Bitcoin Continues Its Rise Towards New Highs: Technical Analysis for December 17, 2024
After a period of consolidation below its previous peak, Bitcoin has reached a new all-time high (ATH), indicating strong bullish momentum. Here’s an outlook on Bitcoin's future.
After reaching just under $104,000, Bitcoin experienced volatility that pushed its price down to the $91,000 support level. Despite concerns, BTC bounced back, showing bullish interest at this level. It later formed an inverse head and shoulders pattern between $94,200 and $102,000. Breaking out of this pattern led to the new ATH at $107,800.
Currently, Bitcoin is priced around $106,000. A minor correction has taken place, but BTC’s short-, medium-, and long-term outlook remains positive. This is supported by the positioning of the 50- and 200-day moving averages, which indicate continued upward movement. The bullish momentum is confirmed by oscillators and the price trend.
The technical analysis was conducted in collaboration with Elie FT, a dedicated investor and trader in the cryptocurrency sector. He is now a trainer at Family Trading, a community of thousands of independent traders active since 2017, offering live sessions, educational material, and support in a professional environment.
The open interest in BTC/USDT perpetual contracts has risen alongside the price of Bitcoin, showing a significant increase in speculative positions. The upward revision of the cumulative volume delta (CVD) suggests that buying interest was strong during Bitcoin’s recent rise. The funding rate indicates that buy positions are still outpacing sell positions, though not excessively. Liquidations remain low, indicating a balanced market where participants are accepting the current price trend.
The liquidation heatmap for BTC/USDT perpetual contracts shows that Bitcoin has moved past a liquidation zone near $104,000 without triggering major selling. Key liquidation zones over the last month range from $98,000 to $102,300, with $90,000 as another significant area. Approaching these levels could activate a large number of orders, raising the potential for increased volatility. These levels are essential for investors to monitor.
If Bitcoin can maintain a position above $99,300, it may continue to the first resistance at the monthly pivot point of $108,500. Surpassing this point could open the door for a new high around $110,000, in line with recent price movements. This would represent roughly a 4% increase.
However, if Bitcoin fails to hold above $99,300, it might find support at around $94,300. A sustained drop could push the price towards the $91,000 support level. In the event of a more severe correction, the support range between $89,000 and $87,000 would be vital, and reaching this level could mean an overall decline of about 18%.
Conclusion
Despite facing corrections and consolidation, Bitcoin continues to exhibit strong bullish momentum, backed by positive technical indicators and solid buying interest.