Despite numerous forecasts that Bitcoin’s (BTC) price could surge to $120,000 before year-end, the coin has encountered a setback, now trading below $97,000. However, historical data indicates that such pullbacks often present an opportunity for new Bitcoin buyers to accumulate.

If this pattern holds true, Bitcoin’s price could close the year on a higher note. This on-chain analysis reveals how this scenario might play out.

Bitcoin Presents a Rare Chance Again

Bitcoin’s price has dropped by 12% over the past seven days, likely due to increased selling pressure as the holiday season ramps up.

This pressure is reflected in the sharp decline of the Coinbase Premium Index, which gauges buying and selling activity in the US. A rising index signals strong buying pressure, while a decline indicates heightened selling.

Currently, the index points to significant selling pressure. However, in previous cycles, intensified selling often attracted new buyers eager to purchase Bitcoin at a discount. If this pattern repeats, BTC could experience renewed accumulation and potentially climb higher.

Interestingly, crypto analyst MAC_D also agrees with the sentiment, noting that the cryptocurrency might soon experience a bounce.

“Historically, this phenomenon has been temporary during bull markets, often attracting new buyers who saw it as an opportunity. While it’s uncertain whether the price following this sharp decline represents the bottom, if the bull market continues, a bottom may form soon, potentially leading to a rebound.” MAC_D

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Author: Victor Olanrewaju