FxPro Senior Market Analyst Alex Kuptsikevich stated that Bitcoin (BTC) has shown signs of recovery since November 21st, forming higher lows and highs. However, for this rise to turn into a sustained bull trend, the total cryptocurrency market capitalization needs to surpass $3.32 trillion.
The global market capitalization currently stands at $3.16 trillion, representing a 2.5% increase from the start of the week, but it remains below its previous peak of $3.21 trillion.
Factors Influencing Bitcoin's Price
CoinGlass data indicates that the primary driver behind the recent drop in BTC is the prevalence of high leveraged positions. Over the past 24 hours, long positions valued at $376 million were liquidated, a figure nearly three times greater than the liquidation of short positions.
Despite the US Federal Reserve announcing another interest rate pause on Wednesday, expectations of fewer rate cuts in the next two years provided only limited support to the market.
Market Predictions for Year-End
QCP Capital predicts that Bitcoin will trade within the range of $84,000 to $100,000 by the end of the year. In contrast, Bloomberg analyst Mike McGlone suggests that the traditional “Santa Claus rally” might not materialize this year, and BTC could potentially fall below $84,000.
Key Price Levels to Watch
Markets are now closely observing whether Bitcoin can maintain its critical support level in the $90,000–$91,000 range. A decline below this level could prompt the price to test the lower end of the current trading range. Conversely, in the event of a potential strengthening, the $94,000 resistance level could re-enter play.