Analysis Company Announces Bitcoin Year-End Forecast! Points to This Month for a Rise!

As the year draws to a close, Bitcoin (BTC) is stuck in a narrow range. Struggling to hold above $90,000, let alone reach $100,000, hopes for a further rise have diminished significantly.

At this point, Singapore-based analytics firm QCP Capital stated that weakening liquidity before the Christmas holidays and year-end institutional leverage reduction operations prevented BTC from rising and kept the price within a certain range.

The analysis firm noted that investors are closing their positions as the Christmas holidays approach, and that leverage in the market is also rapidly decreasing.

The analytics company stated that open positions in Bitcoin and Ethereum (ETH) transactions decreased by approximately $3 billion and $2 billion, respectively, during this period.

“Bitcoin is trading in a narrow range ahead of Christmas. As investors reduce risk before the year-end, open positions in perpetual futures contracts for Bitcoin and Ethereum have decreased by approximately $3 billion and $2 billion, respectively.”

The report also noted that the likelihood of sharp short-term movements has increased due to reduced leverage. However, this possibility is hampered by a major option expiration on the 26th.

“This December 26th option expiry accounts for more than 50% of Deribit’s total open interest. While open interest in $85,000 put options is gradually decreasing, open interest in $100,000 call options remains. Although upside prospects are limited, optimism remains for a year-end Christmas rally.”

The analysis firm cited year-end tax loss sales as a variable, in addition to options. In this regard, QCP warned that sales made prior to December 31st to save on taxes could increase short-term volatility.

Analysts, noting the decrease in trading volume in the year-end market environment, said that crypto prices could react sharply even to relatively small sell orders.

However, QCP also added that price movements during year-end market closes have historically often triggered reversals. Unless there is a clear breakout, the crypto market is expected to move in a volatile and sideways manner until the end of the year.

With liquidity recovering in January, a reshaping of the direction of Bitcoin and the cryptocurrency market seems likely.

*This is not investment advice.