Bitcoin Prediction for Dec 29: Can Bulls Maintain Strength as Short Positions Face Pressure?

Bitcoin shows strong momentum as bulls push higher, while short positions face significant pressure. Where’s BTC headed next?

Bitcoin (BTC) is surging back into the spotlight, gaining notable momentum despite the typical liquidity crunch of the holiday season. BTC’s price recently hit a high of $90,230.38, maintaining a steady uptrend, currently trading at $89,852.56.

The strong move towards the higher end of the daily range ($87,418.78 – $90,230.38) suggests that Bitcoin may be attempting to reclaim its previous resistance levels. Examining the broader performance over the last 1-day, 7-day, and 14-day timeframes, Bitcoin has demonstrated impressive resilience.

Specifically, in the past 24 hours, Bitcoin has gained 2.6%, and in the last 7 days, it has seen a modest 1.2% increase. However, the 14-day performance shows a more tempered growth of 0.3%, suggesting that while the short-term momentum is positive, it’s still in a phase of cautious recovery.

Can Bitcoin Bulls Maintain Strength?

However, the critical question remains: can it maintain strength and break through the resistance levels? Looking at TradingView’s daily chart, Bitcoin is currently testing the $90K zone, with the Fibonacci retracement levels offering insights into potential support and resistance points. 

The most recent price movement has seen BTC break through the 0.5 retracement level (above $89,500), which now acts as a solid support zone. Should Bitcoin drop again, this level will be a key area to watch for buyers to step in and maintain the upward momentum. If BTC fails to close above this support, the next area of significant support could be closer to the $88,000 range.

On the upside, Bitcoin is approaching the 0.618 Fibonacci level at around $90,711, with the $90K mark acting as an immediate resistance. A breakthrough above this resistance could signal further upside potential, opening the door for a move toward the 0.786 level ($92,416) and beyond. 

Meanwhile, the Chande Momentum Oscillator, which measures momentum based on the difference between recent gains and losses, is currently at 34.67. This suggests Bitcoin’s momentum is currently leaning towards a bullish bias. Given that it’s not oversold (below -50) or overbought (above 50), Bitcoin could still have room for either upward or downward movement depending on market conditions and price action around key levels.

Bitcoin Shorts Are Under Pressure

Elsewhere, looking at the futures market, liquidations amounted to a staggering $340.75K over the past hour, with long positions being the dominant force. However, in the 4-hour window, we see a massive contrast, with $539.67K in long positions being liquidated compared to $19.44M in short positions. 

Looking at longer timeframes, the 12-hour and 24-hour liquidation figures are similarly telling. Over the past 12 hours, liquidations reached $43.68 million, with long positions facing a relatively minor $1.82 million in liquidation while short positions were pummeled with $41.86 million in liquidation. 

This shows that despite the price fluctuations, the short side is still under heavy pressure. The 24-hour data paints a similar picture, with $45.51 million in liquidations, $42.49 million of which came from shorts, while longs lost only $3.02 million.