Bitcoin has struggled to reclaim the $100,000 support level over the past few days, reflecting the market’s short-term hesitation.
However, the broader macro perspective suggests that Bitcoin is still poised to make significant gains before 2025, with bullish sentiment gradually taking hold.
Bitcoin’s New Rally May Not Be far From Expected
The total cost basis for short-term holders currently stands at $86,800, not far from Bitcoin’s current price of $94,170. Historically, short-term holders have been quick to sell during price volatility. However, with these investors sitting on 7.9% unrealized gains, they are likely to hold on as market expectations tilt to the upside.
This cautious optimism stems from growing confidence in Bitcoin’s overall outlook. Supported by market sentiment, short-term holders appear poised to maintain their positions. With Bitcoin approaching critical resistance levels, the possibility of higher price targets is motivating holders to avoid early exits, reinforcing the bullish outlook for 2025.
A Crypto Rover analyst recently tweeted that Bitcoin’s bounce from $94,000 could “create new millionaires.” The resilience shown at this price point, which has been tested repeatedly over the past six weeks, highlights its importance as a key support level.
This sustained bounce is driving expectations for a rally to $112,000 in the near term. Bitcoin’s ability to hold above $94,000 amid increasing buying pressure reflects strong macroeconomic momentum. If this trend continues, Bitcoin will break previous resistance levels and target higher benchmarks on its upward trajectory.
Bitcoin Price Prediction: Significant Upside
Bitcoin is currently trading at $94,060, with its next major target set at $120,000. On a macro timeframe, Bitcoin appears to be forming a parabolic curve. This technical formation is in line with the broader expectations of significant growth heading into 2025.
Ethereum Bullish Predictions: Towards $5,000 in 2025
2024 has turned out to be a bullish year for cryptocurrencies, with new tokens making huge gains alongside Bitcoin and Ethereum. While Bitcoin managed to set a new all-time high above $108,000, Ethereum failed to stay above $4,000. Meanwhile, the slow trend in Ethereum’s price rally failed to disappoint market participants as they continued to remain bullish on the second-largest token. Therefore, the price is expected to renew a strong rally in the coming days, which could push levels above $5,000 soon.
Furthermore, significant moves occurred in the world of spot ETFs, as BlackRock’s Ethereum holdings surpassed 1 million ETH, valued at over $3.6 billion. Institutions are amassing millions of ETH every day, while whales have also accumulated massive amounts of ETH during the recent decline. According to reports, Ethereum whales have accumulated over $77 million worth of ETH, which indicates a potential rally for the coin in 2025.
The high accumulation during the recent decline indicates the trading strategy of bulls, who remain bullish on Ethereum but in the shadows. Traders are not openly supporting the coin by inducing the required liquidity but ultimately keeping the price above the crucial support area. This indicates that bulls are vigilant and may regain their dominance very soon; this could lead to not only a good rally in Ethereum but also a possible alternate season.
What to expect from Ethereum price rally in Q1 2025?
Historically, Ethereum price has always managed to attract significant gains in the first few weeks of the year; hence more possibilities for another rally can be expected in the coming weeks. On the other hand, Bitcoin’s dominance has always seen a dip in the first few days of January, which has led to a good rally in Ethereum price.
Bitcoin Resists as Optimism for New Rally Continues
Despite its brief surge to nearly $100,000 over the Christmas period, Bitcoin (BTC) has been on a downtrend over the past few weeks. On December 30, its price dropped to a one-month low of around $91,300. Soon after, bulls managed to recover some of the losses, pushing the valuation to around $95,000. However, the past several hours have provided another pullback, with Bitcoin currently trading at around $93,700.
The asset’s latest pullback came shortly after MicroStrategy made another purchase of the cryptocurrency. As CryptoPotato reported, the company spent over $200 million to purchase 2,136 BTC. This brought its holdings to 446,000 BTC, which, at current rates, is worth over $41 billion.
It is worth noting that this is the eighth consecutive Monday that MicroStrategy has announced a purchase of Bitcoin. While the company’s actions theoretically reduce the supply of the asset on the open market, many cases have seen immediate corrections follow the disclosures.
In contrast to Bitcoin’s recent volatile performance, many industry participants and well-known figures remain optimistic about the possibility of another rally. For example, X user 0xNobler suggested that the asset’s next rally could begin next month.
NBA legend Scottie Pippen was even more optimistic, setting a $1 million target. Interestingly, in September, he said he had a dream with Bitcoin’s anonymous creator, Satoshi Nakamoto, who told him that the cryptocurrency’s price would reach $84,650 on November 5 of this year. The valuation surpassed that number just a week later.
Earlier this week, Shiba Inu’s lead developer Chitoshi Kusama revealed that they intend to launch a podcast next year. It will consist of 44 episodes and cover various aspects of the meme coin ecosystem.
