Bitcoin (BTC) and most cryptocurrencies hit monthly lows near the end of the year, but the market is already on the mend. Some analysts have expressed their expectations for the 2025 bull market and BTC’s performance as the flagship cryptocurrency retests key milestones.
Bitcoin Crash Is Nearing Its End?
Bitcoin has gradually regained its $96,000 level over the past three days, with a brief period on Thursday afternoon when it traded near the $98,000 mark. The main cryptocurrency lost this important range last week and couldn’t get it back for six days. Since around mid-November, this zone has been an important support level.
Nevertheless, Bitcoin’s price increased by about 5% due to the New Year’s bounce and has been trading above $96,000 for the past day. According to several Crypto experts, Reversing Bitcoin’s short-term bearish trend would require the cryptocurrency to regain the $97,300 support zone. Retesting this level yesterday, after more than a week, did not result in a hold.
Notwithstanding this, Crypto analyst Rekt Capital has observed that the ninth week of the “Parabolic Upside Phase” following the halving is “slowly ending,” implying that the correction in BTC is expected to conclude shortly. According to the expert, Bitcoin goes into a parabolic phase following each Halving event that typically lasts about 300 days.
Typically, Bitcoin experiences its first significant pullback one month following the start of price discovery. At least a 25% retracement occurs during the first “Price Discovery Correction” that begins in Weeks 6–8 of every parabolic phase.
Bitcoin Correction & Bear Market
Some market watchers attribute the 15% correction. That occurred during this cycle’s retrace—which began in Week 7—to the general tendency of lesser corrections. “Once Bitcoin Recovery clears its historically corrective weeks,” the flagship cryptocurrency will provide numerous reasons to be positive, according to Rekt Capital.
Likewise, the analyst noted that Bitcoin’s high this year is expected to be followed by the “very beginnings of a brand new bear market.” But the bulk of the market downturn, he said, will happen in 2019 and “be between -65% to -80% deep.”
Bitcoin Should Have an Ideal Q1
Since Bitcoin has been “chopping around the $100,000 level for six weeks now,” Daan’s Crypto trades show a lot of liquidity. He added, “There should be plenty of fuel to propel this higher” at $100,000 and above. Bitcoin is “trading right around the high volume node,” a trader says. Trading volume was concentrated at these prices. Pricing usually moves faster when it separates from high-volume regions.
That break’s top is protected by the 4H 200MA, and the 4H 200EMA may help. Daan said a break over $98,000 might “get the party started and start. The run back to the all-time highs,” with the $95,000 support zone crucial. He said Q1 is usually “pretty positive,” this quarter will be “an interesting race between BTC and ETH.” Given this history, the trader expects the top cryptocurrencies to start the year well.
Summary
Bitcoin (BTC) and the cryptocurrency market hit monthly lows, but they’re recovering. Bitcoin has recovered to $96,000, with some analysts predicting a 2025 bull market. BTC stabilizes after the latest fall, which analysts predict will conclude soon. Bitcoin usually has a parabolic phase followed by a 25% drop after halving. According to experts, the bear market might drop Bitcoin by 80% after its high. However, Bitcoin Recovery is projected to do well in Q1, with $100,000 levels providing resistance and support.
FAQs
What is the parabolic phase of Bitcoin?
After each halving, Bitcoin enters a parabolic phase, typically lasting 300 days, followed by a significant price correction.
How much has Bitcoin corrected recently?
Bitcoin experienced a 15% correction, but experts believe it will clear this phase and continue its upward trajectory.
What is Bitcoin’s outlook for Q1?
Analysts predict a positive Q1 for Bitcoin, with a potential breakout above $98,000 leading to new all-time highs.
Will Bitcoin enter a bear market?
Experts forecast a bear market after Bitcoin reaches its peak, potentially dropping by 65% to 80% in the future.