Bitcoin is likely to recover to its previous high of 102 800 before year wraps up

After Christmas, Bitcoin's price dropped from $99963.69 to $95199.14. This decline happened amid a glitch on the TradingView platform on December 26, which led to a false display of the Bitcoin dominance. As a result, the price of BTCUSD plummeted by 4%, causing $33 million worth of long positions to be liquidated in just 4 hours. This incident once again emphasized the market's high sensitivity to data dominance, especially in a low liquidity environment during the holidays.

Despite the current volatility, there remains a high possibility of a bullish breakout for Bitcoin in the first quarter of 2025. BTC could reach the $110 000–$130 000 range. These predictions are supported by recent investments by the largest asset manager BlackRock, which invested $1 billion in Bitcoins on the eve of the drop in the rate.

In favor of the optimistic forecast is also indicated by the fact that Bitcoin reserves on the largest crypto exchange Binance fell to the lowest level since January 2024. Investors continue to withdraw their assets from the platform, which may indicate a belief in the further growth of BTC. The outflow of Bitcoins from exchanges indicates that market participants are transferring coins to cold storage, demonstrating their unwillingness to part with their assets.

The inauguration of Donald Trump, who is a pro-crypto politician, remains ahead. The implementation of part of his promises could give a major boost to the growth of the digital asset market. One of Trump's most prominent crypto initiatives was his promise to create a bitcoin reserve in the US.

On the technical side, the MACD indicator shows a possible end of the bearish phase. RSI indicator shows the absence of a strong trend. In general, despite the local decline on December 26, there are reasons to expect the growth recovery soon.

The current recommendation for investors is to buy BTCUSD in the range $95199.15–$99277.98. Part of the profit should be taken near the level of $99277.99 to minimize risks. A Stop-loss could be set below $95199.14. The target for BTCUSD could be $102800 by December 31, 2024.