Bitcoin Price News: BTC Should End The Year Slightly Above $80K

Bitcoin (BTC) is once again retesting the $90,000 level as the market continues to trade relatively range-bound ahead of Christmas.

The so-called Santa Rally has not done enough to propel the price of the top crypto to higher ground. Instead, BTC is struggling to stay above $90K as bearish sentiment persists.

On Tuesday, data pertaining to the United States’ economic growth will be released, and this might move the needle a bit if the country’s gross domestic product (GDP) was stronger than expected during the third quarter of the year.

During the weekend, BTC rose silently from $88,000 to $90,600 at the time of writing with relatively low volumes.

As a result of this quiet price action, crypto liquidations have gone down significantly, to just $220 million in the past 24 hours.

Oversold RSI Favors Bullish Outlook For the Next Two Months

However, traders’ interest has been steadily increasing, as indicated by open interest figures. Data from CoinGlass shows that OI has jumped from a recent low of 632,000 BTC back in early December to 664,000 BTC at the time of writing.

This upward trend indicates higher participation as BTC seems to have entered a phase of accumulation.

In addition, technical indicators show that the top crypto may have already hit a local bottom and could start its recovery to at least $100,000 soon.

One of these indicators is the Relative Strength Index (RSI), used to determine the strength of an asset’s price momentum.

Bitcoin’s Performance After RSI Hits Oversold – Source: LSEG

Based on historical patterns, BTC has delivered strong gains shortly after the RSI has hit 30. In fact, the last five times this has happened, BTC has made new higher highs within the next 80 days.

By extrapolating this pattern to today’s price level, analysts from the London Stock Exchange Group anticipate an upcoming push to $180,000 in the next few months.

However, for that to happen, BTC needs to break out of its consolidation, as the daily chart shows that the token could soon retest the low 80,000s after breaking below a key trend line support.

BTC Risks Drop to $82,500 After Bearish Trend Line Breakout

The 4-hour chart shows that BTC dropped below its ascending price channel, although it temporarily found support at around $84,000.

BTC/USD Daily Chart (Binance) – Source: TradingView

The price seems headed to retest the lower bound of that setup soon. If it rejects a move above the $91,000 area, the next pullback could start. This is a relevant area of resistance as it coincides with the 200-period exponential moving average (EMA).

The $82,500 level could be the next target if bearish momentum accelerates. That said, the Relative Strength Index (RSI) is on an uptrend and has already moved past the mid-line.

It is still too early to say if this pullback will occur, but the odds favor a bearish week as traders take a pause from what has been a volatile month to enjoy the holidays.