Bitcoin is set to potentially reach a price target of $140,000 in December, following a turbulent end to November where it hit a local bottom of $90,796. Market bulls have shown resilience with Bitcoin gaining 5.9%, bringing it back above $96,000.
Analyst Ali Martinez predicts a bullish December, noting that Bitcoin has gained significant investor interest in the last quarter of 2024, including a 10.76% gain in October and a 37.99% increase in November. Factors driving this bullish sentiment include a recent Fed rate cut, Donald Trump’s electoral victory, and substantial inflows into spot Bitcoin ETFs.
Historically, December presents an average return of 5.45% for Bitcoin, with a pattern of significant gains following U.S. Presidential elections. If Bitcoin follows this trend, it could trade between $125,000 – $140,000 before the end of 2024.
Technical indicators hint at an ongoing uptrend, with the 100-day simple moving average well above Bitcoin's current price. However, a relative strength index of 75.56 suggests overbought conditions, posing a risk of sudden price drops.
Recently, over 55,000 Bitcoins have been moved from exchanges, reducing available supply and signaling bullish momentum. These withdrawals, valued at $5.34 billion, imply investor anticipation of price increases, further reinforcing an optimistic outlook for Bitcoin.
Despite a slight 0.43% loss in the past 24 hours, Bitcoin trades at $96,203. It faces minor resistance at $97,300, though it's expected to surpass $100,000 soon. However, a decline in trading volume by 41.27% reflects decreased market activity.
