Bitcoin (BTC) had a somewhat turbulent end to November, hitting a local low of $90,796 on Tuesday. Notably, market bulls have shown some resilience in the past few days resulting in a 5.9% market gain to move the digital asset back above $96,000. Interestingly, at the beginning of December, famous market analyst Ali Martinez supported BTC to resume its uptrend to reach the potential target price of $140,000.
Prepare for a bullish December – Analyst
in X posted on November 30Martinez predicted that Bitcoin is likely to maintain positive performance until the last month of 2024.
So far, the cryptocurrency market leader has captured significant investor interest in Q4 2024, rising 10.76% in October and 37.99% in November. The BTC market has been strongly bullish, driven by several factors including the recent Federal Reserve rate cut in November, Donald Trump’s election victory, and rising market inflows into spot Bitcoin ETFs.
Henceforth, December historically presents itself as a two-stage month for Bitcoin, proving an average return of 5.45% and an average return of -3.59% over the past 11 years.
However, Martinez explains that Bitcoin has traditionally risen in any December following a US presidential election, as evidenced by gains of 30.80% and 46.92% in 2016 and 2020 respectively. If the major cryptocurrency reverses this similar pattern from these previous bull cycles, the analyst expects Bitcoin to trade between $125,000 – $140,000 before 2024 runs out.
According to Bitcoin’s weekly chart data, the 100-day simple moving average (SMA) remains well above its price indicating a continuation of the uptrend, consistent with Martinez’s forecast. However, a Relative Strength Index (RSI) of 75.56 indicates that Bitcoin was overbought and vulnerable to a sudden price drop.
Investors are withdrawing $5 billion worth of Bitcoin from exchanges
In more positive news for the Bitcoin community, more than 55,000 Bitcoins worth $5.34 billion have been transferred from cryptocurrency exchanges over the past three days. this development It is largely interpreted as bullish because it reduces the supply of Bitcoin available on exchanges, which could reduce selling pressure. Moreover, it indicates investors’ expectation of immediate price gains by BTC.
At the time of writing, Bitcoin is trading at $96,203 after a 0.43% loss over the past 24 hours. On any further rise, Bitcoin will face minor resistance at $97,300, which should not provide any major opposition as the digital currency is largely expected to cross $100,000 sooner or later.
Meanwhile, Bitcoin’s daily trading volume, worth $31.98 billion, fell by 41.27%, indicating a decline in trader participation and overall market activity.
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