Bitcoin (BTC) experienced quite a bumpy end to November, reaching a local low of $90,796 on Tuesday. Notably, market bulls have shown some resilience over the past few days, producing a 5.9% market gain to push the digital asset back above $96,000. Interestingly, as December began, popular market analyst Ali Martinez favored BTC to resume its uptrend and reach a potential price target of $140,000.
Prepare for a bullish December – Analyst
In a Nov. 30 post on X, Martinez predicted that Bitcoin is likely to maintain positive performance until the last month of 2024.
So far, the cryptocurrency market leader has attracted significant investor interest in the fourth quarter of 2024, gaining 10.76% in October and 37.99% in November. Several factors have made the BTC market extremely bullish, including the recent November Fed rate cut, Donald Trump's election victory, and market inflows into spot Bitcoin ETFs.
Moving forward, December has historically been a two-tier month for Bitcoin, with an average return of 5.45% and a median return of -3.59% over the past 11 years.
However, Martinez explains that Bitcoin traditionally spikes in December after the US presidential election, as evidenced by gains of 30.80% and 46.92% in 2016 and 2020, respectively. If the premier cryptocurrency mirrors a similar pattern of previous bull cycles, analysts expect Bitcoin to trade between $125,000 and $140,000 before running out of cash in 2024. I'm predicting.
Data from BTC weekly charts shows that the asset’s 100-day simple moving average (SMA) remains well above price, indicating a continuation of the uptrend, consistent with Martinez’s prediction. However, the relative strength index (RSI) of 75.56 indicates that Bitcoin is overbought and vulnerable to sudden price declines.
Investors withdraw $5 billion in Bitcoin from exchanges
In more positive news for the Bitcoin community, more than 55,000 Bitcoins (worth $5.34 billion) have been moved from cryptocurrency exchanges in the past three days. This development is primarily interpreted as bullish, as it could reduce the supply of Bitcoin available on exchanges, reducing selling pressure. Moreover, this means that investors are expecting an immediate price increase from BTC.
At the time of writing, BTC is trading at $96,203 after falling 0.43% in the past 24 hours. On a further rally, Bitcoin will encounter a small resistance level at $97,300, but it will not pose much resistance as the leading cryptocurrency is likely to cross $100,000 sooner rather than later.
Meanwhile, BTC's daily trading volume (equivalent to $31.98 billion) declined by 41.27%, indicating a decline in trader participation and general market activity.
