Bitcoin (BTC) experienced quite a tumultuous end to November, hitting a local low of $90,796 on Tuesday. It is worth noting that market bulls have shown some resilience over the past few days, which has led to the market rising 5.9%, bringing the value of the digital asset back above $96,000. Interestingly, in early December, popular market analyst Ali Martinez backed BTC to resume its uptrend, reaching a potential price target of $140,000.
Get ready for a bullish December – analyst
IN post X from November 30Martinez predicted that Bitcoin will likely maintain its positive performance into the last month of 2024.
The cryptocurrency market leader has enjoyed mighty investor interest so far in Q4 2024, gaining 10.76% in October and 37.99% in November. The BTC market is showing a mighty rally driven by several factors, including the recent Fed interest rate cut in November, Donald Trump’s election victory, and the market’s huge inflow into cash Bitcoin ETFs.
Going forward, December has historically been a two-phase month for Bitcoin, as evidenced by an average return of 5.45% and a median return of -3.59% over the last 11 years.
However, Martinez explains that the price of Bitcoin has traditionally increased each December following the US presidential election, as evidenced by increases of 30.80% and 46.92% in 2016 and 2020, respectively. If the major cryptocurrency mirrors this similar pattern from previous bull cycles, the analyst predicts that Bitcoin will trade in the range of $125,000 to $140,000 before 2024.
According to data from the BTC weekly chart, the asset’s 100-day straightforward moving average (SMA) remains well above its price, signaling a continuation of the uptrend, in line with Martinez’s projection. However, the Relative Strength Index (RSI) of 75.56 indicates that Bitcoin has been overbought and is vulnerable to sudden price declines.
Investors are withdrawing $5 billion worth of Bitcoin from exchanges
More positive news for the Bitcoin community is that over 55,000 Bitcoins worth $5.34 billion have been transferred from cryptocurrency exchanges in the last three days. This development is largely interpreted as bullish as it reduces the available supply of Bitcoin on exchanges, potentially reducing selling pressure. Moreover, this means investors are waiting for immediate increases in BTC prices.
At the time of writing, BTC is trading at $96,203 after losing 0.43% in the last 24 hours. In any further upside, Bitcoin will face minor resistance at $97,300, which shouldn’t pose much of a challenge as the leading cryptocurrency is largely tipped to break above $100,000 sooner than later.
Meanwhile, BTC’s daily trading volume, valued at $31.98 billion, dropped by 41.27%, indicating a decline in investor participation and overall market activity.
