Bitcoin Price Surge- Bitcoin at $95K: Is $100,000 Next?
Bitcoin Price Surge– Bitcoin (BTC) has entered December with an eye on the elusive $100,000 mark, as the cryptocurrency continues to hover just below its all-time high. The month of November proved to be a significant milestone for Bitcoin, setting a record for the largest monthly USD gains in its history.
Bitcoin’s Price Action and Record Monthly Gains
Bitcoin’s price action in November 2024 was historic, with the cryptocurrency closing the month at $96,400, marking its largest-ever one-month US dollar gain. Despite not yet breaking the $100,000 barrier, the bullish momentum from the previous month has set the stage for what could be a monumental December.
Cory Klippsten, CEO of Swan Bitcoin, described November’s performance as “a new ballgame,” highlighting the record-setting nature of the monthly candle. Yet, in terms of percentage gains, the 37% upside seen in November is not as extraordinary compared to Bitcoin’s strongest months in previous years. Still, many analysts see this as the beginning of a much bigger rally.
Charles Edwards, founder of Capriole Investments, believes that Bitcoin is entering the “insane price discovery phase” and that upcoming months could provide insane long opportunities. Edwards suggested that once Bitcoin breaks past $100,000, it could trigger a new wave of parabolic price action fueled by retail FOMO (fear of missing out).
Bitcoin’s Near-Term Price Structure: Bull Flag Formation
As of December 2, Bitcoin continues to trade around $95,000, with analysts keeping a close eye on its price action as it consolidates beneath the critical $100,000 level. Trader Rekt Capital pointed out that Bitcoin has successfully retested $91,000 as support, signaling a potential upward breakout. Bitcoin has rebounded +7% after retesting ~$91,000 as support, Rekt Capital wrote, suggesting that a daily close above $97,450 could trigger further bullish momentum toward $100,000.
Despite this optimistic outlook, some traders are also cautious, noting that Bitcoin is still susceptible to short-term retracements. Keith Alan, co-founder of Material Indicators, pointed out that key support levels now lie at $95,000 and $90,000. A short-term retest of support is possible, trader Kevin Svenson remarked, though he remains overall bullish.
The Path to $100,000: A Bullish Trend in Play
Bitcoin’s journey toward $100,000 may still be unfolding, but the cryptocurrency’s overall trend suggests that a breakout is likely. The funding rates across exchanges remain relatively low, indicating that the market is not overheating. Jelle, a trader on X (formerly Twitter), observed that despite Bitcoin trading near its all-time highs, funding rates have remained near baseline levels, suggesting a lack of excessive leverage and speculative activity. This could provide a more stable foundation for further price increases.
Funding rates on Bitcoin are still really low, considering the number of people calling for a ‘top,’ said the Bitcoindata21 analytics account, comparing the current environment to the overheated market conditions of 2021, when funding rates were significantly higher.
US Jobs Data and the Fed’s Impact on Bitcoin’s Price
The coming week will be crucial for Bitcoin as it coincides with important economic data releases, including US job openings and unemployment reports. These figures will play a key role in determining the Federal Reserve’s next move regarding interest rates. As of now, market expectations are leaning toward a 0.25% rate cut at the Federal Reserve’s next meeting on December 18.
Material Indicators’ Keith Alan suggested that if the Federal Reserve announces a rate cut, it could act as a catalyst for Bitcoin to break past $100,000. A 25bps rate cut would not only be an early Christmas gift for Bitcoin, it could likely send BTC past $100K, Alan explained. On the other hand, if the Fed decides against cutting rates, Bitcoin may experience a price correction.
On-Chain Metrics Point to a Strong Uptrend
On-chain data is providing further support for Bitcoin’s bullish outlook. The Spent Output Profit Ratio (SOPR) has recently printed its second “golden cross” of the current bull market, a technical indicator that typically precedes strong upward price movement. CryptoQuant contributor Crypto Dan noted that after the golden cross appears, Bitcoin usually experiences a sharp rise within the next two months.
The upcoming rise is likely to be a ‘sharp rise in the final phase of the upward cycle, Crypto Dan wrote, emphasizing that the magnitude of this rise tends to be larger as the market moves toward the later stages of the cycle. If the current trends hold, Bitcoin could experience a significant surge in price heading into the end of 2024 and early 2025.
Bitcoin’s Bullish Momentum Continues
Bitcoin’s continued price action below $100,000 signals that the cryptocurrency may be preparing for a breakout. With November marking a record for Bitcoin’s monthly gains and a variety of technical indicators pointing toward further upside, the stage is set for potential explosive growth in December.
While Bitcoin has not yet broken the $100,000 threshold, the signs are promising. Funding rates remain low, macroeconomic factors like the Fed’s interest rate decision are aligned with bullish sentiment, and on-chain metrics are showing favorable signals. However, as always, market conditions can change quickly, and Bitcoin traders should stay informed and prepared for any sudden market corrections.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.
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