Bitcoin (BTC) continues to trade in a tight-range between $92,000 to $97,000 in the new year. However, crypto analysts are confident that the leading cryptocurrency is on the verge of a “massive breakout” to the upside.
Bitcoin To Make New ATH In Q1 2025?
2024 was nothing short of a watershed year for the flagship cryptocurrency, as BTC went on to create multiple new all-time highs (ATH) following Republican pro-crypto presidential candidate Donald Trump’s win in the November election.
Other major factors that propelled Bitcoin to new highs include BTC halving in April, the approval of spot Bitcoin exchange-traded funds (ETF) in the US, and rising corporate adoption of the digital asset. While BTC is currently trading about 10% below its most recent ATH of $108,135, analysts believe that the digital asset is poised to create a new ATH in Q1 2025.
For example, seasoned investor Jason A. Williams noted that BTC has re-entered the accumulation zone after its last impulsive move, which saw it surge past the previous ATH in the low $70,000 range to beyond $100,000. Williams stated:
In my view, a few weeks of consolidation could set the stage for a massive breakout. $131.5K+ by Q1 2025 feels inevitable. See you there.
Similar thoughts were echoed by crypto trader Daan Crypto Trades, who shared the following BTC Rainbow Chart. Despite BTC’s strong performance during this cycle, the chart indicates that BTC’s price has yet to enter any of the “warmer” colors. The analyst added that 2025, being a post-halving year, is likely to see “the most action” in terms of BTC price movement.
The analyst emphasized that recent BTC price action suggests $95,800 as a key resistance level. A breakout above or below this level could provide insights into BTC’s price trajectory over the next few weeks.
Another crypto trader, Jelle, highlighted similarities between BTC’s price action in 2023-2024 and 2024-2025. Jelle pointed to a chart fractal that broke out to the upside in 2023-2024, suggesting that a similar trajectory could propel BTC to as high as $143,000.
Crypto Traders Should Be Cautiously Optimistic
While the aforementioned predictions present an optimistic outlook for BTC in Q1 2025, some analysts are urging caution. For instance, analyst Ali Martinez shared that if BTC loses the $88,000 price level, it may tumble all the way down to $71,000.
Martinez added that the number of wallets holding more than one Bitcoin has fallen by 18,530 in the past two months, indicating significant profit-taking during the current bullish momentum. At press time, BTC trades at $97,538, up 4.1% in the past 24 hours.