Last week, Bitcoin bulls successfully defended the crucial $85,000 support level, closing the week at $88,656. The price on the weekly chart has been consistently rejecting from the lower trend line of a broadening wedge pattern. However, with the trend line now significantly lower, there is an expectation for the price to push above this level in the current week. Failure to do so could lead to a downward movement into the low $70,000 range.

For the current week, bulls aim to continue their upward push, facing several key resistance levels. Initial resistance is identified at $91,400, followed by $94,000. A more substantial resistance barrier is expected at $98,000. Beyond this, a strong resistance zone is projected from $101,000 up to $108,000. A sustained close above $108,000 would significantly challenge the long-term top currently in place.

On the support side, the $84,000 level has proven resilient, successfully holding the price once again last week. Should this critical level be breached, the next expected support zone lies between $72,000 and $68,000, which should provide at least initial support. A weekly close below $68,000 would likely initiate a prolonged descent towards the 0.618 Fibonacci retracement support level at $57,000.

The outlook for this week suggests that bears may be growing frustrated by their inability to break key support. Bulls, having successfully defended these levels, are expected to push back with increased confidence. Due to Christmas week, market liquidity is anticipated to be low, potentially leading to subdued price movements. However, a significant volume of long-dated Bitcoin options are set to expire on December 26th, with a maximum pain price of $100,000. This expiry could drive the price to test levels closer to $100,000 this week. The current market mood is considered bearish, though bulls are showing signs of pushing back, needing to confirm this with positive price action.

Looking ahead to the next few weeks, the ability of bulls to overcome the $94,000 resistance level will be crucial for sustaining upward momentum into the new year. A weekly close above $94,000 could propel the price towards $101,000, and potentially even $108,000 if a close above $100,000 is achieved. However, resistance becomes exceptionally strong near the $108,000 mark, indicating that a significant rejection should be anticipated if the price reaches this level in the coming weeks.

Terminology Guide:

• Bulls/Bullish: Buyers or investors who anticipate an increase in asset price.
• Bears/Bearish: Sellers or investors who anticipate a decrease in asset price.
• Support or support level: A price point where an asset is expected to hold, at least initially. Repeated touches tend to weaken support, increasing the likelihood of a breakdown.
• Resistance or resistance level: The opposite of support, a price point that is likely to reject upward price movement, at least initially. Multiple touches at resistance can weaken it, increasing the chances of a breakout.
• Broadening Wedge: A chart pattern characterized by an upper trend line acting as resistance and a lower trend line acting as support. These trend lines diverge from each other, indicating expanding price volatility, typically resulting in higher highs and lower lows.
• Fibonacci Retracements and Extensions: Ratios derived from the golden ratio (1.618 and 0.618), which represent universal constants observed in natural growth and decay cycles. These ratios are used to identify potential support and resistance levels.