Bitcoin (BTC) had a rather turbulent end to November, reaching a local low of $90,796 on Tuesday. Notably, the market bulls have shown some resilience in recent days, delivering a 5.9% market gain, pushing the digital asset back above $96,000. Interestingly, at the beginning of December, popular market analyst Ali Martinez backed BTC to resume its uptrend and reach a potential price target of $140,000.
Prepare for Bullish December – Analyst
In an X-post on November 30Martinez predicted that Bitcoin will likely continue to deliver positive performance into the final month of 2024.
So far in the fourth quarter of 2024, the crypto market leader has managed to attract significant investor interest, with a gain of 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 the market’s large inflows into spot Bitcoin ETFs.
Looking ahead, December historically presents itself as a two-phase month for Bitcoin, proven by an average return of 5.45% and an average return of -3.59% over the past 11 years.
However, Martinez explains that Bitcoin has traditionally risen sharply in December following the US presidential elections, as evidenced by gains of 30.80% and 46.92% in 2016 and 2020 respectively. As the leading cryptocurrency, this similar pattern from these previous bull cycles reflects, the analyst predicts Bitcoin will trade between $125,000 and $140,000 before 2024 expires.
According to data from BTC’s weekly chart, the asset’s 100-day simple moving average (SMA) remains well above its price, indicating a continuation of the uptrend, in line with Martinez’s projection. However, a relative strength index (RSI) of 75.56 indicates that Bitcoin is overbought and vulnerable to sudden price drops.
Investors are withdrawing $5 billion of Bitcoin from the exchanges
More positive news for the Bitcoin community is that more than 55,000 Bitcoins, worth $5.34 billion, have been removed from crypto exchanges in the past three days. This development is largely interpreted as bullish because it reduces the available Bitcoin supply on exchanges, potentially reducing selling pressure. Moreover, it indicates investors’ expectation of immediate BTC price gains.
At the time of writing, BTC is trading at $96,203, having lost 0.43% in the past 24 hours. Any further rise will see Bitcoin hit a small resistance at $97,300, which should not present any major resistance as the main cryptocurrency is largely expected to break above $100,000 sooner or later.
Meanwhile, the daily trading volume of BTC, valued at $31.98 billion, has fallen 41.27%, indicating a decline in trader participation and overall market activity.