Bitcoin Approaches New All-Time High, Boosting Prospects for ETH, LINK, AAVE, and BGB

Bitcoin (BTC) is showing strong upward momentum as it inches closer to its all-time high of $104,088. The leading cryptocurrency’s rally has sparked optimism across the market, with analysts predicting that Bitcoin’s surge could have a positive effect on other major cryptocurrencies, including Ethereum (ETH), Chainlink (LINK), Aave (AAVE), and Bitget Token (BGB). With Bitcoin's breakout on the horizon, many expect these altcoins to follow suit and post strong gains in the coming months.

Bitcoin Price Analysis

Bitcoin has recently recovered from weekly lows and is moving toward the $104,088 resistance level, its previous all-time high. A breakthrough above this level could signal a resumption of its uptrend, with Bitcoin potentially rallying to $113,331 and even $125,000. However, caution is warranted, as the relative strength index (RSI) shows signs of a negative divergence, indicating a possible weakening of bullish momentum.

If Bitcoin fails to break above the $104,088 resistance and instead falls below its 20-day exponential moving average (EMA) at $97,985, a correction could be in store. In that case, the price may dip to the 50-day simple moving average (SMA) at $88,705. Bitcoin’s ability to sustain its upward trajectory and break past resistance will be critical in determining the next phase of its market cycle.

Ethereum (ETH) Showing Strength Ahead of Potential All-Time High

Ethereum (ETH) is also gaining attention as it approaches resistance in the $4,000 to $4,094 range. Despite facing significant selling pressure in this zone, the cryptocurrency remains resilient, with bulls holding strong positions. Moving averages suggest a bullish outlook, although the negative divergence on the RSI raises concerns that Ethereum’s uptrend might be losing momentum.

For Ethereum to break above $4,094, it will need to maintain momentum, especially around the key support at the 20-day EMA ($3,723). A successful move above this resistance could lead Ethereum to test new highs, potentially reaching $4,500. Conversely, a drop below $3,500 would indicate that bears are gaining control, shifting the market sentiment in their favor.

Chainlink (LINK) Poised for Upside Move

Chainlink (LINK) has been in an uptrend, but a long wick on the December 13 and 14 candlesticks indicates that sellers have been active above the $30 mark. The critical support to watch for is at $27.41. If the price bounces from this support level or the current range, it could signal a breakout above $31, setting the stage for an extended rally toward $34.50 and potentially $38.30.

However, if LINK breaks below $27.41, the bearish sentiment could intensify, with the next support being the 20-day EMA at $23.87. Chainlink’s market direction will largely depend on how it reacts to these key levels in the short term.

Aave (AAVE) Eyes $450 After Breakout

Aave (AAVE) has shown strength recently, bouncing off the 20-day EMA ($283) on December 10 and breaking through the near-term resistance at $300. The price is now testing resistance around the $400 mark, but bulls have yet to give up ground, indicating that the upward trend may continue.

If AAVE successfully breaks above $400, it could see a sharp rally toward $450. Support is located at $330, the 38.2% Fibonacci retracement level, and a rebound from this level would signal continued bullish momentum. However, if the price falls below $330, AAVE may drop to the 20-day EMA, which could shift the market sentiment toward a bearish trend.

Bitget Token (BGB) Faces Resistance at $3.50

Bitget Token (BGB) has experienced strong upward movement but recently encountered selling pressure around $3.50. The bulls are attempting to defend the $3 level, and a rebound from here could signal another attempt to push past the $3.50 resistance. If successful, BGB could surge toward $4.

On the other hand, if the price falls below $3, BGB may decline to the 20-day EMA ($2.43), suggesting a potential range-bound phase. The cryptocurrency has also been encountering resistance at the downtrend line, and if it fails to rise above this level, the price could drop to $2.40. If BGB manages to clear the downtrend line, it would likely resume its uptrend, targeting the next resistance levels at $3.34 and $3.50.

Market Outlook for 2025

As Bitcoin pushes toward new all-time highs, analysts expect the overall cryptocurrency market to continue its bullish momentum into 2025. VanEck, an asset management firm, predicts that the first quarter of 2025 will see the peak of the current bull market, followed by a 30% pullback in Bitcoin and a deeper correction of up to 60% in altcoins. However, the firm forecasts a recovery beginning in the fall, with major tokens regaining momentum and possibly reclaiming previous all-time highs by the end of the year.

Bitcoin mining industry researcher Danny Marques, who studied Bitcoin’s previous bull cycles, believes that Bitcoin could reach between $173,646 and $461,135 in 2025, barring any significant macroeconomic downturns similar to the one seen in 2020.

As the market prepares for these potential shifts, Ethereum, Chainlink, Aave, and Bitget Token are among the top altcoins to watch for potential breakout opportunities, particularly if Bitcoin surpasses its all-time high. The strength of these cryptocurrencies in the short term could offer valuable insights into the broader market's trajectory in the coming year.