Bitcoin Price Outlook: Bulls Target $94,000 Break

Bitcoin bulls are attempting to regain momentum after successfully defending the $84,000 support level last week. The price closed the week at $88,656, setting the stage for a potential push higher.

The primary focus for traders is the $94,000 resistance level. A break above this point is seen as necessary to sustain upward momentum into the new year. Market conditions suggest low liquidity this week due to the Christmas holiday, but an options expiry event on December 26th could influence price action.

If the current bullish push fails, the market could see a decline toward the $70,000 range. However, holding support and breaking resistance could lead to a test of higher levels near $101,000.

Bitcoin price action last week centered on defending critical support levels. Bulls managed to hold closes above $85,000, preventing a bearish breakdown. The price dipped to test support but was pushed back up, resulting in a weekly close of $88,656.

The price has been rejecting from the lower trend line of a broadening wedge pattern for several weeks. Currently, this trend line is positioned low enough that a price push above it is anticipated this week. If this push fails, the market is expected to take the next leg down into the low $70,000 range.

Key support and resistance levels identified include:

• Support: The $84,000 level is proving resilient.
• Major Support Zone: $72,000 to $68,000.
• Critical Support: A close below $68,000 could lead to a slow grind down to the 0.618 Fibonacci retracement support at $57,000.

To gain bullish momentum, the price must overcome several resistance hurdles. The initial resistance sits at $91,400, followed by the critical level at $94,000.

Should the price break through $94,000, the next significant barriers are:

• $98,000: Very strong resistance.
• $101,000 - $108,000: A fairly strong resistance zone.

A weekly close above $94,000 is the trigger for a move toward $101,000. Momentum could continue to $108,000 if the price closes above $100,000. However, resistance becomes extremely thick near the $108,000 level, suggesting a strong rejection could occur if the price reaches that zone.

The market mood is described as bearish, though bulls are pushing back. The bears have recently failed to break support, which may be causing frustration. Consequently, bulls are expected to push back harder this week as they gain confidence.

Market liquidity is expected to be low during the Christmas week, which typically results in lacking price movement. However, a significant event is the expiration of very large long-dated Bitcoin options on December 26th.

These options have a max pain price of $100,000. This dynamic often pulls the spot price toward that level as expiration approaches. Therefore, market watchers should look for the price to attempt a push closer to the $100,000 level this week.

Bitcoin bulls face a pivotal moment as they attempt to convert the $84,000 support defense into sustained upward momentum. The $94,000 level remains the key resistance to watch; a break above this is required to validate a bullish continuation into the new year.

While low holiday liquidity may dampen immediate volatility, the looming December 26th options expiry at a $100,000 max pain price provides a specific catalyst for potential price movement. Traders should monitor the price action closely for a weekly close above key resistance levels to confirm the next major trend direction.