Bitcoin had a bumpy end to November, briefly dipping to around $90,800. But it quickly bounced back, gaining nearly 6% and trading above $96,000. One analyst, Ali Martinez, predicts a bullish December, with Bitcoin potentially reaching $140,000.
A Bullish December?
Martinez believes Bitcoin will continue its upward trend into December. Bitcoin’s performance has been strong in the fourth quarter of 2024, with gains of over 10% in October and a whopping 37% in November. Several factors are driving this bullish sentiment, including the recent Fed rate cut, Donald Trump’s election victory, and increased investment in Bitcoin ETFs.
Historically, December is a mixed bag for Bitcoin, with average returns varying wildly over the past 11 years. However, Martinez points out that Bitcoin has seen significant gains in Decembers following US Presidential elections—a 30% jump in 2016 and almost 47% in 2020. If this pattern repeats, he anticipates Bitcoin trading between $125,000 and $140,000 before the year ends. Bitcoin’s 100-day moving average also supports this prediction.
Overbought, But Still Bullish?
While the outlook is positive, it’s worth noting that Bitcoin’s Relative Strength Index (RSI) is currently above 75, suggesting it’s overbought and potentially vulnerable to a price drop.
Billions in Bitcoin Leave Exchanges
Adding to the bullish sentiment, over $5 billion worth of Bitcoin has been moved off exchanges in just three days. This is generally seen as positive, as it reduces the amount of Bitcoin available for selling, potentially lessening downward pressure on the price and suggesting investors expect further price increases.
Current Market Conditions
At the time of writing, Bitcoin is trading around $96,200, slightly down for the day. While there’s minor resistance around $97,300, most analysts expect Bitcoin to break through $100,000 soon. However, daily trading volume is down significantly, indicating less market activity.
