Despite numerous predictions that the Bit price will reach $120,000 by the end of the year, the coin is currently trading below $97,000. However, historical data suggests that such corrections provide accumulation opportunities for new Bit buyers.
If this pattern persists, the Bit price could close the year at higher levels. This on-chain analysis shows how this scenario could unfold.
Bit, Offering Another Rare Opportunity
The Bit price has dropped 12% over the past 7 days. This is likely due to increased selling pressure as the holiday season approaches.
This pressure is reflected in the sharp decline of the Coinbase Premium Index, which measures buy and sell activity in the US. When the index rises, it indicates strong buying pressure, and when it falls, it indicates increased selling pressure.
Currently, the index is pointing to significant selling pressure. However, in previous cycles, when selling pressure intensified, new buyers often flocked to purchase Bit at discounted prices. If this pattern repeats, BTC could experience a new accumulation phase and potentially rally higher.
Interestingly, crypto analyst MAC_D also agrees with this view, mentioning that cryptocurrencies could soon rebound.
"Historically, this phenomenon has been temporary in bull markets, often attracting new buyers who see it as an opportunity. While it is uncertain whether the sharp decline indicates a bottom, if the bull market continues, a bottom could form soon, potentially leading to a rebound." MAC_D pointed out on CryptoQuant.
Furthermore, the declining rate of Bit holders realizing profits also supports this outlook. On December 16th, on-chain transaction volume was over 250,000 BTC.
This value has now decreased to 51,000 BTC, indicating that the Bit price decline has forced investors to HODL their assets instead of liquidating them. If this value continues to decrease, the likelihood of a BTC rebound increases.
BTC Price Prediction: Recovering to $100,000 Soon?
Based on the 4-hour chart, Bit found support at $92,888. As a result, the price received stronger support at $95,871. However, the Awesome Oscillator (AO) is still negative, suggesting bearish momentum.
But with the appearance of green histogram bars, BTC may avoid another significant drop and trade at higher prices. If so, the Bit price could reach $104,299 in the short term. In a very bullish market condition, it could even rise to $108,386.
However, if the price falls below the mentioned support levels, this prediction could be invalidated. In that case, the Bit price could drop to $92,144.
