Recent decline in the price of Bitcoin has raised alarm among investors in terms of the future of the leading crypto currency. It has also generated interests into the overall crypto economy as the performance of altcoins follows that of Bitcoin most of the time.
However, Matrixport has predicted that a lasing breakout of Bitcoin may occur in the New Year despite the trend reversal given the subjective reasons and factors involved.
Can the Bitcoin Price Increase Further This New Year?
According to Matrixport, a leading cryptocurrency research company, Bitcoin could possibly break out this year, based on its past price behavior. The firm made these claims in a post on X, stressing that the cryptocurrency appeared to have gone through a rally then a period of consolidation lately.
In addition, Matrixport noticed a rabid growth in Bitcoin’s Futures Open Interest, moving from twenty billion US dollars in October to twenty-nine billion US dollars in December – a 50 percent growth.
The funding rate also surged to eighty percent. Consolidation in the market has typically followed after such fast market changes, before the market actually resumes the upward trend.
Matrixport further elaborated that Bitcoin is at the moment digested the ferocity of the past few weeks and therefore, the low trading revenue during holiday times could be an indication of a halt instead of a reversal.
Analysts are predicting a rekindled market drive as 2025 gets closer that may increase the value of bitcoin across the board. This revision to the outlook has also raised expectations that there could be a similar surge for other major altcoins.
The recent decline in Bitcoin has certainly been of concern to certain parties, while other consider it to be the course of a normal market cycle. Matrixport expects new money could flow in during the New Year which could help fuel another Rally which is in line with increasing digital assets usage and appetite.
At the time of writing, Bitcoin price has slightly declined by 2% to $92,928, however there was substantial jump in trading volume which increased by 78% to $39.55 billion.
The price of Bitcoin reached $95,067.72 while for the past month it has lost approximately 4$ on its value. Even with the drop in value that the currency suffers, one factor worth considering is that the Futures Open Interest has remained at status quo meaning that bullish momentum could be coming.
Data from CoinGlass suggests that bitcoin’s price most often appreciates in the first quarter. For example, bitcoin appreciated in the year of 2023 by 71%, and in the year of 2024 the appreciation was even greater, at 69%. Having this in mind though, the graph is expected to hit a breakout.
However, having to draw a line of optimism, there are some people who still express elevated levels of caution in regard to the general movement of the price of Bitcoin in the shorter run.
For instance, Bitcoin might reach a target price even lower than 78K according to warnings from Peter Brandt. However, Brandt is already optimistic that the price range will settle around 108K.
In spite of these near term headwinds the long term bullish trend for Bitcoin is still intact. Recent analysis revealed several facets which if materialized could lead to a major bullish move for the cryptocurrency in the month of January.
