Bitcoin (BTC) Continues to Display Resilience as it Maintains Its Position Within the Ascending Channel

Bitcoin continues to display resilience as it maintains its position within the ascending channel despite a recent false breakout below the support line.

Bitcoin encountered support at a crucial level following a false breakout below the lower boundary of the ascending channel on the 12-hour chart. BTC could resume its uptrend if this zone holds, targeting the upper resistance line.

After bouncing off the support line, Bitcoin encountered resistance at the ascending channel’s upper boundary. This level coincides with the Daily 55EMA, which has acted as a critical moving average throughout the year.

As the year comes to a close, several patterns emerge in Bitcoin’s price action, influenced by market participants’ varying strategies during this period.

After a strong pump from October to November, December usually brings range-bound action, marked by temporary bounces from key moving averages like the Daily 55EMA.

Historical trends suggest that BTC’s price movement during the end-of-year period tends to follow a familiar pattern.

The expectation remains that BTC could see a bottom around the Daily 100EMA in early January, estimated near the $85,000–$87,000 range. If this scenario unfolds, a subsequent rebound toward all-time highs may follow.

According to the analysis, investors maintaining patience through this period might find lucrative opportunities as the cycle top is not believed to be in yet.

Bitcoin’s recent price action has been supported by long-term holders, who remained largely unfazed by the selling pressure from younger coins.

Data from CryptoQuant reveals that long-term holders played a significant role in Bitcoin’s recent price dynamics. Investors holding Bitcoin for 6–12 months were the most active sellers during the November-December rally, likely taking profits from positions accumulated earlier in the year.

Despite this selling pressure, BTC has managed to stay within the $90,000–$100,000 range, thanks to robust demand from younger coins. Notably, holders with assets aged over a year showed minimal selling activity, signaling confidence in higher future valuations.

Furthermore, the Binary CDD indicator, which measures the average age of coins being sold, also supports the observation that older coins are being sold less aggressively. This aligns with the analysis that many long-term holders are holding out for more significant price milestones.