Bitcoin (BTC) Enters the Last Few Days of 2024 Generally Following a Sideways Consolidation Phase

Bitcoin is entering the last few days of the year still generally following a sideways consolidation phase. As the $BTC price moves into the first quarter of 2025, could this be the beginning of the final blow-off stage which takes Bitcoin much, much higher?

Bitcoin price analysis: BTC price to explode in Q1 2025?

Bitcoin is entering the last few days of the year still generally following a daily sideways consolidation phase. As the price moves into the first quarter of 2025, could this be the beginning of the final blow-off stage which takes Bitcoin much, much higher?

The last candle flame of 2024 is guttering, about to be extinguished as the bright new flame of 2025 is about to be lit. Entering into this strong new light, the price of Bitcoin has the tailwinds behind it which could send it to unimaginable heights in the coming new year.

Bitcoin’s path from despair to the hope of a very bright future

From the depths of despair, when an incredibly anti-Bitcoin administration sought to strangle the king of the cryptocurrencies, along with the entire cryptocurrency ecosystem; to an incoming Trump administration that has vowed to support and encourage the growth of Bitcoin and crypto in the US; this unfolding story of cutting-edge technical innovation has been fascinating to watch.

Operation Chokepoint 2.0 is officially over. Gary Gensler, Chairman of the SEC, has said that he will step down the day before Donald Trump is inaugurated for his second term of President. With Trump’s administration full of pro-crypto members in several key positions, the future looks very bright.

Institutions are onboard

The institutions are now on board as far as Bitcoin is concerned, with Blackrock, the biggest asset management company in the world, buying BTC for its institutional clients at the most frantic pace. This has made the Spot Bitcoin ETFs the most successful ever in the history of ETF launches.

Add to this the gargantuan Bitcoin buying spree of MicroStrategy, which has been copied by a growing number of companies that are boosting their stock price by cramming more and more BTC into their treasuries, and you have a huge pile of dynamite just ready to explode.

$BTC follows sideways price action over last few weeks

Source: TradingView

The daily chart for $BTC shows that the price has definitively left the ascending channel, and now appears to be following the bottom trendline of this channel, perhaps to fall back to around $90,000 which is the measured move for this breakdown.

That said, if one looks at the $BTC price over the last few weeks, it can be seen that it has generally traversed sideways, with one spike in mid-December that took $BTC to the all-time high of around $108,000.

Currently, the price is traversing above horizontal support at $95,600. Horizontal resistance has formed above this at $100,000, and the price is moving inside this range.

RSI downtrend has to be reversed

Source: TradingView

In the weekly time frame it can be seen that the current price is above the long-time ascending trendline from 2021. Several candle wicks to the downside show how Bitcoin bulls are keeping the price buoyant. It might be imagined that once this consolidation is over, there could be some explosive price action that takes $BTC to the next level.

At the bottom of the chart, the Relative Strength Index is signalling a possible tick back to the upside. The red arrow points to the indicator starting to turn back up after the recent dip.

If this is confirmed at the weekly close, it will be important to watch to see if this indicator line can retest the ascending trendline. In fact, in order to avoid bearish divergence, as price increases while the RSI decreases, the indicator line will have to pierce through the descending trendline, and make a higher high in order to reverse the downtrend. Failure to do so could result in the end of this bull market.