Key Bitcoin Levels Under The Spotlight This Weekend: Insights From Glassnode

Bitcoin (BTC), the largest cryptocurrency by market capitalization, has experienced a remarkable uptrend over the past three weeks, inching close to the elusive $100,000 mark. 

This follows Donald Trump’s victory in the presidential election over Democratic Party candidate Kamala Harris, which boosted investor confidence in a new era for the broader industry.

This has led to increased adoption of the leading crypto, with major corporations worldwide adopting it as a strategic reserve asset. In addition, inflows into exchange-traded funds (ETFs) have increased, further contributing to the bull run.

However, after its recent 7% correction, the Bitcoin price fell to around $91,000. Then it regained the $96,000 mark, raising questions about its ability to break through the psychological $100,000 barrier before the end of the year.

The peak price of $99,540 achieved last week has left investors wondering whether Bitcoin can sustain its momentum or if selling pressure will lead to further consolidation. 

Despite the uncertainty, Glassnode founders Yann Allemann and Jan Happel have provided insights into Bitcoin’s potential trajectory as December approaches. They acknowledge the challenges ahead but maintain that the $100,000 target remains feasible.

In a social media post on X (formerly Twitter), Allemann and Happel outlined critical levels to watch in Bitcoin’s price action. 

They noted that while Bitcoin is currently in a bullish channel, resistance at $97,200 has yet to be overcome. Should this resistance hold firm, a retest of the $92,700 support level—aligned with the Daily 20 Simple Moving Average (SMA)—is likely. 

This support zone is deemed crucial by the two founders for maintaining the bullish channel and keeping the $100,000 target within reach.

Adding to the bullish sentiment, crypto analyst Ali Martinez highlighted historical trends indicating that Bitcoin has typically surged in December following US presidential elections. 

In the last two cycles, Bitcoin recorded gains of 30% and 46%, leading Martinez to speculate that if history repeats itself, Bitcoin could close out the year in the range of $125,000 to $140,000.

Martinez further pointed out that long-term Bitcoin holders have been taking profits as the price climbed from $62,000 to $99,000. However, he emphasized that this profit-taking behavior is typical during bull markets and should not be interpreted as a signal to short the asset. 

The analyst asserts that according to historical patterns, long-term holders often realize gains as prices rise, which can create short-term volatility but does not necessarily indicate a shift in the overall market trend.

At the time of writing, BTC is trading at $96,500, down a slight 0.3% in the 24-hour time frame and down nearly 2% in the past week.

Featured image from DALL-E, chart from TradingView.com