Bitcoin (BTC) Price Presents a Rare Chance to Accumulate Before Year-End Surge, On-Chain Analysis Reveals

Despite numerous forecasts that Bitcoin's (BTC) price could surge to $120,000 before year-end, the coin has encountered a setback, now trading below $97,000.

Despite earlier forecasts predicting a Bitcoin (BTC) price surge to $120,000 by year-end, the coin has experienced a setback and is now trading below $97,000. However, a closer examination of historical data suggests that such pullbacks often present an opportune moment for new Bitcoin buyers to accumulate.

If this pattern holds true, Bitcoin’s price could close the year on a higher note. This on-chain analysis reveals how this scenario might play out.

Bitcoin Presents Another Rare Chance

Over the past seven days, the price of Bitcoin has decreased by 12%, which could be attributed to increased selling pressure as the holiday season intensifies.

This pressure is evident in the sharp decline of the Coinbase Premium Index, which gauges buying and selling activity in the United States. A rising index indicates strong buying pressure, while a decline signifies heightened selling.

Currently, the index indicates significant selling pressure. However, in previous cycles, such intensified selling attracted new buyers who saw it as an opportunity to purchase Bitcoin at a discount. If this pattern repeats, BTC could experience renewed accumulation and potentially climb higher.

notably, crypto analyst MAC_D also agrees with this sentiment, observing that the cryptocurrency might soon experience a bounce.

“Historically, this phenomenon has been temporary during bull markets, often attracting new buyers who saw it as an opportunity. While it’s uncertain whether the price following this sharp decline represents the bottom, if the bull market continues, a bottom may form soon, potentially leading to a rebound.” MAC_D noted on CryptoQuant.

Furthermore, the rate of profit-taking among Bitcoin holders also supports this outlook. On December 16, the on-chain transaction volume in profit was over 250,000 BTC.

As of this writing, the value has decreased to 58,1000, indicating that the decline in Bitcoin’s price has forced investors to keep HODLing instead of liquidating their assets. Should this value continue to decrease, then a BTC rebound could likely occur.

BTC Price Prediction: Back Above $100,000 Soon

Based on the 4-hour chart, Bitcoin has found support at $92,888. As a result, the price has found another stronger support at $95,871. However, the Awesome Oscillator (AO) has remained negative, which suggests bearish momentum.

However, with green histogram bars appearing, BTC could evade another notable decline and trade higher. If that is the case, Bitcoin’s price could reach $104,299 in the short term. In a highly bullish market condition, the value could rise to $108,386.

On the other hand, a decline below the support level mentioned above could invalidate this prediction. If that were to happen, Bitcoin’s price might decline to $92,144.