Bitcoin's price performance in December 2024 is marked by consolidation and potential bullish momentum. After reaching an all-time high of $99,600 in November, Bitcoin is currently trading between $92,000 and $98,000, suggesting a stable phase. Analysts believe this range could precede another upward move due to several factors.
Key Points:
1. Potential Upside: Many experts predict Bitcoin may surpass the psychological $100,000 level before year-end, driven by factors like institutional demand, ETF approvals, and macroeconomic trends such as a possible U.S. Federal Reserve rate cut in mid-December.
2. Consolidation Phase: The current market shows reduced profit-taking and steady trading volumes, indicating consolidation. This stability is seen as a prelude to another significant price move.
3. Resistance and Support Levels: Analysts highlight $97,000 as a key resistance level, with support around $92,000. A breakout above resistance could push BTC toward $105,000-$110,000, while a breakdown would likely find support at $89,000.
4. Historical Trends: December has shown mixed results historically, with gains in bull market years but also notable corrections in certain instances. Average returns for December are around 5%, with a median of -1.73%.
While Bitcoin's direction is uncertain, it currently leans toward a bullish trajectory given the favorable macroeconomic conditions and strong demand. However, investors should remain cautious due to the volatile nature of cryptocurrency markets.
