Bitcoin rewards holders in unprecedented ways, as BTC's price action has been just inches away from $100,000 for the second week in a row.
Bitcoin has been eyeing $100,000 since December began, as the sunset marks a distinctive month.
* Volatility below historical highs has traders guessing when the magical six-figure price tag will appear for Bitcoin (BTC).
* November 2024 set the record for the largest dollar increase in Bitcoin's single-month candle.
* Funding rates indicate a lack of overheated market conditions – a key factor supporting further increases.
* Before the Fed's key interest rate decision, U.S. employment data has had a fruitful week.
* On-chain profit trends guide a classic parabolic bull market atmosphere through the rare SOPR 'golden cross'.
Bitcoin works on a 'bull flag' below $100,000.
After validating the critical price breakout of BTC in November, Bitcoin avoided lightning volatility at weekly close.
According to Cointelegraph Markets Pro data, on December 2, BTC/USD was still hovering around $95,000, continuing to circle below what many consider a critical level of $100,000.
Considering the recent BTC price trends, trader and analyst Rekt Capital revealed a successful support retest.
'After successfully retesting ~$91,000 (red) as a support level, Bitcoin rebounded +7% upward,' they wrote in a recent article on X.
'In the short term, it is worth watching how price action continues to develop in this potential bull market marking structure.'
Rekt Capital added that a daily close above $97,450 'could trigger additional trend continuation to challenge $100,000 again.'
On the downside, Keith Alan, co-founder of trading resource Material Indicators, pointed out that the current support levels are at $95,000 and $90,000.
A short-term retest of support is possible, trader Kevin Svenson studied part of the 4-hour time frame in his X post.
'Overall, although short-term, my bias is bullish.'
The accompanying chart presents $93,500 as a potential next support retest area.
Monthly BTC price performance: 'A new ballgame.'
Bitcoin's price may not have reached $100,000 yet, but BTC's price action quietly created history over the weekend.
BTC/USD closed the November monthly candle at $96,400, achieving the largest single-month dollar increase in history.
'This is a new ballgame,' wrote Cory Klippsten, CEO of investment platform Swan Bitcoin, with an optimistic reaction.
The candle stood out on the monthly chart in an unprecedented manner, but in percentage terms, it was not unusual.
Data from monitoring resource CoinGlass shows that the upside in November was 37%, which pales in comparison to Bitcoin's most successful November this year.
For Charles Edwards, founder of quantitative Bitcoin and digital asset fund Capriole Investments, this balance should correct itself soon.
'Every cycle we get 4-7 months of crazy Bitcoin price discovery returns. We just had the first one in November!'
'The next few months will have crazy long opportunities. The normal mindset is not prepared yet.'
Edwards continued that breaking through the $100,000 threshold would inject a new wave of parabolic behavior into prices.
'Real FOMO starts from over $100. Once the epic sell wall collapses, we enter a supply vacuum and adopt a new retail-driven infinite bidding. Do the math,' he wrote.
Previously, Edwards suggested that Bitcoin should replicate gold after breaking key resistance levels this year.
Funding rates remain stable.
Market stability is likely to allow people the chance to adapt to six-figure Bitcoin.
As trader Jelle pointed out this week, despite prices trading near historical highs, funding rates across exchanges remain manageable.
'Many are talking about the price needing a larger correction and the market being unhealthy. Meanwhile, with baseline funding approaching, the price is hovering around $95,000,' he told X followers.
For weeks, funding has exhibited this relaxed trend, even as BTC/USD continues to set records.
'Considering the number of people recently calling it a 'top signal', Bitcoin's funding rates remain very low...' The analysis account Bitcoindata21 responded to this view on X last week.
Bitcoindata21 compared the current Bitcoin bull market to 2021, when funding rates were several times higher. Even in March 2024, when BTC/USD hits a historical high of $73,800, financing volume significantly increases.
U.S. employment data is in the spotlight.
As the countdown to the Fed's next interest rate decision begins, the labor market dominates this week's U.S. macroeconomic data release.
After job vacancies on December 3, unemployment claims will be released two days later, ending with the unemployment report.
'This is an important week for the labor market,' trading resource The Kobeissi Letter stated when discussing the macro diary.
Kobeissi noted that this data constitutes 'the last week of labor market data before the December 18 Fed meeting.'
On December 18, the Federal Open Market Committee (FOMC) will decide whether to change the benchmark interest rate. As Cointelegraph continues to report, overall bets still lean towards a new decline of 0.25%, but the market is more uncertain than in previous months.
The CME FedWatch Tool currently shows a 67% chance of a 0.25% rate cut.
'If Bitcoin hasn't broken through before the FOMC meeting on December 18, a 25 basis point cut would not only be an early Christmas gift but could also become a catalyst for $BTC to exceed $100,000,' said Alan from Material Indicators.
'On the other hand, any cuts cannot become catalysts for triggering corrections and BTC timed purchases.'
Bitcoin metric golden cross teases 'sharp rise'.
Bitcoin analysis is digging up new signals supporting continued upward movement.
This week, the highly anticipated SOPR has printed the second 'golden cross' of the current bull market.
Crypto Dan, a contributor to the on-chain analytics platform CryptoQuant, emphasized the event's clear impact.
After a golden cross appears, the market typically starts a strong rally within 2 months at the latest, he wrote in a CryptoQuant Quicktake blog post on December 2.
The upcoming surge could be a 'sharp rise in the final stage of the upcycle.'
SOPR measures whether the token price used in on-chain transactions is above or below the previous transaction, indicating on-chain profitability. A golden cross occurs when the 30-day moving average of the indicator is above its 365-day moving average.
'As the market enters the later stages of the cycle, the magnitude of increases tends to be larger, and periods of decline/corrections are shorter,' the post said.
If this indicator shows a sharp rise between the end of 2024 and the first quarter of 2025, new inflows and additional funds can be expected to enter the market, pushing it to its peak.