- Bitcoin started December with a small drop, reflecting typical monthly market oscillations.
- BTC tested support near $86,000, holding firm despite recent volatility and downward moves.
- A successful break above $92,000–$94,000 resistance could push Bitcoin toward $100,000.
Bitcoin (BTC) began the new month with a small depreciation, though, in the assessment of crypto analyst Michaël van de Poppe, this can be seen as just another cycle in the oscillations of the total market trend.
In the latest market analysis, van de Poppe highlights automated trading action, low liquidity, and the retest of certain resistance levels as the factors causing the current retreat.
Bitcoin Dips Before Resistance Test
Van de Poppe points out that “Bitcoin tends to have increased action at the start of each month.” Because of the restart of algorithmic trading systems, short-term selling pressure emerges, and this leads to the sharp drop seen in early December, as seen in the chart above.
Market liquidity is also poor. In this case, the analyst points out that the large shake-out that took place on October 10 caused many people to withdraw from the marketplace. Consequently, when fewer people are transacting within the marketplace, any selling pressure at all can drive stock prices down quickly.
In spite of this slight correction, the prevailing market conditions for bitcoin remain unchanged, van de Poppe added. “They were rejected at an important level of resistance, and this only strengthens the consolidation that has been in play for several weeks now.”
His technical analysis of Bitcoin indicates that it approached the resistance level of $92,000 to $94,000 several times and that it didn’t manage to overcome this barrier, and this led to the rejection that is causing it to go down at the moment.
Bitcoin Slides Find Strong Support
In the TradingView chart, it is evident that there has been some descent from the recent top around $92,000, and then just a brief test of the level below $86,000 before buyers came in. All of this is in line with what van de Poppe believes about large algorithmic moves and low liquidity at the start of the month.
Still, it is evident from the chart that despite the volatility, it also prevails at the lower end of the range and thus resists further breakdowns.
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BTC Could Surge After Consolidation Phase
Van de Poppe remains cautiously optimistic. He believes that Bitcoin will retest the same resistance level in the next one or two weeks. If it can break past that level, it may continue moving further upward and test the level of $100,000.
For now, it appears that Bitcoin is currently trying to consolidate and recover its strength. According to this analyst, this correction is just another normal reset of the markets, and it doesn’t point towards any possible weaknesses in the currency.
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