The recent dip in Bitcoin price has fueled concerns of investors over what lies ahead for the flagship crypto. Besides, it also fueled speculations over the future of the broader crypto market, especially as the top altcoins often follow BTC’s performance. However, despite the recent dip, Matrixport has recently predicted a potential New Year breakout for BTC, citing its historical trends and other factors.
Will Bitcoin Price Bounce Back Stronger This New Year?
Top crypto research firm Matrixport recently highlighted historical trends as an indicator of a possible New Year breakout for Bitcoin price. In a post on X, the firm pointed to the cryptocurrency’s strong rally in recent months and the subsequent consolidation phase.
Notably, Matrixport noted that Bitcoin’s Futures Open Interest surged by 50%, from $18 billion in October to $29 billion in December. During this time, the funding rate also climbed significantly, peaking at 80%. Historically, such rapid buildups in market positions have been followed by consolidation periods before an upward trend resumes.
“Bitcoin is currently digesting the exuberance of the past few weeks,” Matrixport stated. They also emphasized that subdued trading volumes over the holiday season might signal a temporary pause rather than a reversal. As 2025 approaches, traders are anticipating renewed market activity, potentially driving Bitcoin prices higher. This has also fueled speculations over a potential rally ahead for the top altcoins.
Although Bitcoin’s dip has cast a shadow on its recent gains, many view this as part of the market’s natural cycle. In other words, the new year could see fresh inflows, reigniting a rally that aligns with the broader adoption and interest in digital assets, Matrixport suggested.
BTC Rally Ahead?
BTC price today was down around 2% and exchanged hands at $92,928, while its trading volume soared 78% to $39.55 billion. The crypto has touched a high of $95,067.72 while witnessing a monthly price dip of about 4%. However, despite the recent dip, Bitcoin Futures Open Interest stayed near the flatline, indicating a bullish momentum ahead for the crypto.
In addition, historical data from CoinGlass showed that Bitcoin price often tends to rally in the first quarter of the year. For context, BTC has surged 69% and 71% in 2024 and 2023, respectively. Having said that, the market eagerly awaits a potential breakout ahead for the crypto.
Despite the optimism, some experts remained cautious over the short-term pullbacks in Bitcoin price. For context, Peter Brandt has recently predicted a potential BTC crash to $78K, sparking market discussions. However, in another recent post, Brandt predicted BTC to hit $108K again in the coming days, which reflects his growing confidence in the crypto.
Meanwhile, despite the short-term concerns, the long-term outlook of the bullish crypto still remained strong. A recent Bitcoin price analysis highlighted key reasons that could trigger a massive rally for the crypto in January.
Rupam Roy
Rupam is a seasoned professional with three years of experience in the financial market, where he has developed a reputation as a meticulous research analyst and insightful journalist. He thrives on exploring the dynamic nuances of the financial landscape. Currently serving as a sub-editor at Coingape, Rupam’s expertise extends beyond conventional boundaries. His role involves breaking stories, analyzing AI-related developments, providing real-time updates on the crypto market, and presenting insightful economic news.
Rupam’s career is characterized by a deep passion for unraveling the complexities of finance and delivering impactful stories that resonate with a diverse audience.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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