Bitcoin price recovers 3% ahead of 2025 after December slump to 5-week low
Bitcoin rebounds to $94,500 after hitting $91,500 low, eyes $96,500 resistance in 2025
Bitcoin has experienced significant volatility in the final weeks of 2024, reaching a five-week low of $91,500, only to recover and trade near $94,500 during the European session of December 31.
Despite short-term bearish trends, Bitcoin's overall momentum shows resilience, driven by both market reactions and institutional support, particularly from BlackRock's recent push into Bitcoin-related exchange-traded funds (ETFs).
Bitcoin’s price movements in December reflect a larger struggle for control at the $92,000 support level, which has held firm since November. The cryptocurrency threatened to break below this critical support level five times throughout the month but was consistently supported by buyers stepping in. On December 31, Bitcoin managed to recover 3%, rising to $94,500, a key reversal after hitting the month's low of $91,500.
Indicators and institutional backing point to positive Bitcoin outlook
Technical indicators suggest that Bitcoin could see further upside in price action. The Relative Strength Index (RSI), which had dipped to 30, has risen to 50, pointing to a potential continuation of positive momentum. However, the 100-period Exponential Moving Average (EMA) on the 4-hour chart stands as a near-term resistance at $96,500, which will be pivotal in determining Bitcoin’s short-term direction.
BTC price dynamics (November-December 2024). Source: TradingView.
While Bitcoin has found support and risen in recent months, institutional backing including BlackRock’s iShares Bitcoin Trust (IBIT) which launched in January 2024 has been a major factor influencing Bitcoin’s price dynamics in 2024.
As we move into 2025, Bitcoin’s price trajectory will likely remain tethered to key technical levels, particularly the $92,000 support and $96,500 resistance, while ongoing institutional interest could continue to propel its growth.
Bitcoin keeps fluctuating between $100,000 as resistance and $92,000 as support. The Crypto Fear & Greed Index retreated to a score of 65 on December 30, marking the lowest reading since October 15.
