TL;DR
- Bitcoin’s daily confirmed payments hit a yearly low of 623,434 on December 26, 2024, due to price drops and holiday market illiquidity.
- The decline in confirmed payments highlights the impact of market conditions, with a sharp contrast between the December 26 figures and the peak on December 17, when Bitcoin’s price reached $108,000.
- Despite the recent decline, some analysts believe Bitcoin may recover above $100,000, driven by historical patterns and contrarian market views, suggesting potential for a price rally.
Bitcoin‘s daily confirmed payments have reached their lowest point of the year, reflecting a combination of price drops and holiday market illiquidity. On December 26, 2024, the number of confirmed Bitcoin transactions sank to 623,434, marking the lowest level in 2024.
This decline is significant, especially when compared to mid-December when Bitcoin’s all-time high price of $108,000 prompted over 857,000 confirmed payments.
Factors Contributing to the Decline
The drop in confirmed Bitcoin payments is typical of the holiday season, which often sees reduced market activity and liquidity. The metric of confirmed BTC payments, which represents transactions successfully added to the blockchain, is a key indicator of investor engagement within the Bitcoin network.
The sharp contrast between the December 26 figures and the peak on December 17 highlights the impact of market conditions on transaction volumes.
Market Sentiment and Analyst Insights
Bitcoin’s social sentiment has taken a hit, as the ratio of positive to negative comments has fallen to 4:5, marking the lowest level of sentiment observed this year. Despite Bitcoin maintaining a price above $95,000, retail traders have expressed heightened pessimism.
Contrarian analysts suggest that such periods of fear could precede a price rally, as markets often move opposite to retail sentiment. Elja Boom, a well-known crypto analyst, pointed out fractal patterns on the chart that indicate a potential rise in momentum.
However, contrasting views from market technician Aksel Kibar indicate that the current correction could persist for another week, drawing parallels to similar scenarios in 2017 and 2021. Kibar’s analysis also warns of a potential head-and-shoulders pattern, a classic indicator of an uptrend reversal, which could push Bitcoin’s price toward $80,000.
Bullish Scenarios for 2025
Despite the recent decline, some analysts believe that Bitcoin may recover above $100,000, citing historical patterns that hint at a potential rebound. The cryptocurrency, which peaked at $108,000 on December 17, has since dropped over 10%, currently trading around $97,150.
The possibility of a moderate pullback rather than a steep decline is supported by market responses, suggesting that Bitcoin’s fundamentals remain strong. The recent drop in confirmed Bitcoin payments per day underscores the impact of market conditions and sentiment on transaction volumes.
While the holiday season has contributed to reduced activity, the potential for a price rally remains, driven by historical patterns and contrarian market views. As Bitcoin navigates these fluctuations, investors and traders should stay informed and prepared for potential volatility in the coming months.
