bitcoin (btc) experienced a rather turbulent end to November, hitting a local low of $90,796 on Tuesday. Notably, market bulls have shown some resistance in recent days, producing a 5.9% market gain to push the digital asset back above $96,000. Interestingly, as December begins, popular market analyst Ali Martinez has backed btc to resume its uptrend reaching a potential price target of $140,000.
Prepare for a bullish December – Analyst
In<a target="_blank" href="https://x.com/ali_charts/status/1862828079816507771″ target=”_blank”> a post x on November 30Martínez predicted that bitcoin is likely to maintain positive performance until the last month of 2024.
The cryptocurrency market leader has so far garnered significant investor interest in the fourth quarter of 2024, gaining 10.76% in October and 37.99% in November. The btc market has been strongly bullish, driven by several factors including the recent Fed rate cut in November, Donald Trump's election victory, and high market inflows into bitcoin spot ETFs.
Going forward, December historically presents as a two-phase month for bitcoin, demonstrated by an average return of 5.45% and an average return of -3.59% over the past 11 years.
However, Martínez explains that bitcoin has traditionally increased in any December following the US presidential election, as evidenced by gains of 30.80% and 46.92% in 2016 and 2020, respectively. If the leading cryptocurrency reflects this similar pattern from these previous bull cycles, the analyst predicts that bitcoin will trade between $125,000 and $140,000 before the end of 2024.
Based on btc weekly chart data, the asset's 100-day simple moving average (SMA) remains well above its price, indicating a continuation of the bullish trend in line with Martinez's projection. However, a Relative Strength Index (RSI) of 75.56 indicates that bitcoin has been overbought and is vulnerable to sudden price drops.
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Investors withdraw $5 billion worth of bitcoin from exchanges
In more positive news for the bitcoin community, over 55,000 Bitcoins, valued at $5.34 billion, have been transferred from crypto exchanges in the last three days. This<a target="_blank" href="https://x.com/ali_charts/status/1862783994942664839″ target=”_blank”> development is largely interpreted as bullish as it reduces the available supply of bitcoin on exchanges, potentially decreasing selling pressure. Furthermore, it signifies investors' anticipation of immediate price gains by btc.
At the time of writing, btc is trading at $96,203 following a 0.43% loss in the last 24 hours. On any further rise, bitcoin will encounter minor resistance at $97,300, which should not offer major opposition as the leading cryptocurrency is expected to surpass $100,000 sooner or later.
Meanwhile, btc's daily trading volume, valued at $31.98 billion, has decreased by 41.27%, indicating a decline in trader participation and overall market activity.
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