The post Bitcoin Price Analysis: $120K Rally or $78K Drop What’s Next? appeared first on Coinpedia Fintech News
The entrance of Bitcoin (BTC) price above $100k, for the first time since its existence earlier this month, was viewed as one of the most important bullish milestones during the 2024/2025 bull market. However, the accelerated crypto cash rotation to large and mid-cap altcoins in preparation for a parabolic altseason in 2025, has weighed down on Bitcoin’s previous bullish sentiment.
The flagship coin has dropped more than 14 percent in the past two weeks to trade about $93.3k on Monday, December 30, during the mid-London session. With Bitcoin price, in the daily time frame, having consistently closed below the 50 Moving Average (MA), it is safe to assume that the short-term bears have the upper hand.
Midterm Targets for Bitcoin Price as Per Brandt’s Chart
According to veteran trader Peter Brandt, Bitcoin price has been hovering around a crucial crossroads, which could either lead to a rally towards $120k or further correction towards the support level above $78k. From the correction perspective, Brandt highlighted that Bitcoin price could be forming a potential head and shoulder (H&S) pattern, in the daily time frame.
On the bullish rebound outlook, Brandt noted that Bitcoin price could be forming the famous Hump Slump Bump Dump Pump (HSBDP) chart construction.
Market Picture
Despite the short-term bearish outlook for Bitcoin, institutional investors – led by BlackRock’s IBIT, and MicroStrategy Inc. (NASDAQ: MSTR) – have continued to aggressively accumulate more coins. According to on-chain data analysis provided by Coinglass, the supply of Bitcoin on centralized exchanges has declined to a multi-year low of about 2.24 million.
The US spot Bitcoin ETF issuers have registered a cumulative total net inflow of about $35.6 billion, thus currently holding total net assets of around $106.6 billion. However, the Bitcoin’s Futures Open Interest (OI) market has declined by over $7 billion in the past few weeks to hover at about $59 billion, signaling rising fear of a potential midterm selloff.
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