Bitcoin's Critical Support Test: Is $87K the Next Bottom?

Bitcoin's ascending channel remains intact, with a crucial support line retest underway. Historical patterns suggest choppy price action in December, with a potential rebound in early January. Long-term Bitcoin holders remain resilient, anticipating higher price peaks.

Bitcoin continues to display resilience as it maintains its position within the ascending channel despite a recent false breakout below the support line. After reclaiming the channel, the flagship cryptocurrency is now retesting its critical support zone.

According to analyst Trader Tardigrade, BTC could resume its upward trajectory if this level holds firm, targeting the upper resistance line. Market participants are closely watching this level as a decisive point for short-term price action.

Year-End Patterns Signal Bitcoin's Choppy Price Action

Meanwhile, another analyst's analysis pointed out that Historical trends suggest BTC's price movement during the end-of-year period tends to follow a familiar pattern. Following a strong pump from October to November, December usually brings range-bound action, marked by temporary bounces from key moving averages like the Daily 55EMA.

The expectation remains that BTC could see a bottom around the Daily 100EMA in early January, estimated near the $85,000–$87,000 range. If this scenario unfolds, a subsequent rebound toward all-time highs may follow. Investors maintaining patience through this period might find lucrative opportunities as the cycle top is not believed to be in yet.

Long-Term Holders Show Confidence Despite Selling Pressure

Data from CryptoQuant reveals that long-term holders played a significant role in Bitcoin's recent price dynamics. Investors holding Bitcoin for 6–12 months were the most active sellers during the November-December rally, likely taking profits from positions accumulated earlier in the year.

Despite this selling pressure, BTC has managed to stay within the $90,000–$100,000 range, supported by robust demand. Notably, holders with assets aged over a year showed minimal selling activity, signaling confidence in higher future valuations.

Furthermore, the Binary CDD indicator indicates reduced selling activity from older coins, reinforcing the belief that many long-term holders are holding out for more significant price milestones.

As Bitcoin navigates the year's final stretch, all eyes remain on support and resistance levels within the ascending channel. Historical trends point to potential volatility before a January rebound, and the market awaits clarity in the coming weeks.

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