Bitcoin (BTC) has experienced significant volatility in December 2024, reaching an all-time high of approximately $108,100 on December 16, followed by a correction to around $95,700.
This correction aligns with increased outflows from Bitcoin Exchange-Traded Funds (ETFs), indicating potential profit-taking by investors.
Despite this short-term volatility, the long-term outlook for Bitcoin remains bullish, supported by:
Institutional Adoption: The approval of Bitcoin-holding ETFs has diversified investment opportunities and increased market participation.
Regulatory Environment: The election of a crypto-friendly U.S. president has bolstered market optimism, with expectations of supportive policies contributing to Bitcoin's rise.
Market Dynamics: A significant increase in stablecoin supply, reaching a record high, indicates ample liquidity in the crypto market, which often precedes bullish movements in Bitcoin.
Technical analysis suggests that while Bitcoin has experienced short-term corrections, the medium to long-term trends remain bullish. Indicators such as the Moving Average Convergence Divergence (MACD) are still increasing, and the Relative Strength Index (RSI) has not yet signaled overbought conditions.
However, it's important to note that Bitcoin's price is subject to volatility, and past performance does not guarantee future results. Investors should consider these factors and conduct thorough research before making investment decisions.
For a more in-depth technical analysis, you may find the following video helpful:
Understanding the Bullish and Bearish BTC Scenarios
