analysis
Will December Surpass November’s Record-Breaking Bitcoin Price Increase?
Bitcoin is closing out one of its most remarkable months in history, surging over $30,000 in November and marking a renewed bullish sentiment in the market. As we look ahead to December and beyond, investors are eager to understand whether Bitcoin’s momentum can sustain itself into 2025. With macroeconomic conditions, historical trends, and on-chain data aligning in Bitcoin’s favor, let’s analyze what’s happening and what it could mean for the future.
November’s Record-Breaking Performance
November 2024 wasn’t just any month for Bitcoin; it was historic. Bitcoin’s price rose from around $67,000 to nearly $100,000, an approximate 50% peak-to-trough increase, making it the best-performing month ever in terms of dollar increase. This rally rewarded long-term holders who endured months of consolidation after Bitcoin’s all-time high of $74,000 earlier in the year.
Historically, Q4 is Bitcoin’s strongest quarter, and November has often been a standout month. December, which has also performed well in past bull cycles, presents a promising outlook. But as with any rally, some short-term cooling might be expected.
The Role of the Dollar and Global Liquidity
Interestingly, Bitcoin’s rise occurred against the backdrop of a strengthening U.S. Dollar Strength Index (DXY), a scenario that typically sees Bitcoin underperforming. Historically, Bitcoin and the DXY have maintained an inverse relationship: when the dollar strengthens, Bitcoin weakens, and vice versa.
Similarly, the Global M2 money supply, another key metric, has shown a slight contraction recently. Bitcoin has historically correlated positively with global liquidity; thus, its current performance defies expectations. If liquidity conditions improve in the coming months, this could act as a powerful tailwind for Bitcoin’s price.
Parallels to Past Bull Cycles
Bitcoin’s current trajectory is strikingly similar to past bull markets, particularly the 2016–2017 cycle. That cycle began with gradual price increases before breaking key resistance levels and entering an exponential growth phase.
In 2017, Bitcoin’s price broke out from a key technical level of around $1,000, leading to a parabolic rally that peaked at $20,000, a 20x increase. Similarly, the 2020-2021 cycle saw Bitcoin rise from $20,000 to nearly $70,000 after breaking above the crucial YoY Performance threshold.
If Bitcoin can break out decisively from this historic level and above the key $100,000 resistance, we may witness a repeat of these explosive price movements as BTC enters its exponential phase of bullish price action.
Institutional Adoption and Accumulation
A key factor underpinning Bitcoin’s strength is the continued accumulation by institutions. Bitcoin ETFs are adding billions of dollars worth of BTC to their holdings, and corporations like MicroStrategy have doubled down on their Bitcoin strategy, now holding close to 400,000 BTC. Even with BTC rallying to new all-time highs, ‘smart money’ is scrambling to accumulate as much as possible to ensure they’re not left behind.
This institutional demand indicates growing confidence in Bitcoin as a long-term store of value, even in volatile market conditions. Such accumulation also tightens the available supply, creating upward pressure on prices as demand increases.
Conclusion
While December has historically been a strong month for Bitcoin, short-term volatility could temper gains as the market digests November’s sharp rally. Although given the aggressive accumulation we’re witnessing from institutional participants anything is possible.
Longer-term, however, the outlook remains exceptionally bullish. The obvious level to watch is $100,000 as the next major milestone, which, if breached, could pave the way for a much larger rally in 2025. Bitcoin is entering one of its most exciting phases yet, with the stars seemingly aligning across macroeconomic, technical, and on-chain metrics.
For a more in-depth look into this topic, check out a recent YouTube video here: The BIGGEST Bitcoin Month EVER – So What Happens Next?
🎁 Black Friday: Our Biggest Ever Sale
The BEST saving of the year is here. Get 40% Off all our annual plans.
- Unlock +100 Bitcoin charts.
- Access Indicator alerts – so you never miss a thing.
- Private TradingView indicators of your favorite Bitcoin charts.
- Members-only Reports and Insights.
- Many new charts and features coming soon.
All for just $15/month with the Black Friday deal. This is our biggest sale all year.
UPGRADE YOUR BITCOIN INVESTING NOW
Don’t miss out! 👉 https://www.bitcoinmagazinepro.com/subscribe/
Source link
Bitcoin (BTC) price has been consolidating within a roughly $5,500 range since March 9 as the $84,000 level represents stiff overhead resistance.
Data from Cointelegraph Markets Pro and Bitstamp shows BTC price oscillating between $78,599 and $84,000, as shown in the chart below.
BTC/USD daily chart. Source: Cointelegraph/TradingView
Key reasons why Bitcoin price remains flat today include:
Trump’s trade war tensions causing uncertainty in the market.
Weakening demand for Bitcoin and neutral funding rates.
BTC price remains pinned below the 200-day SMA.
Broader economic uncertainty, weakening demand
Bitcoin’s price stagnation is partially due to the broader economic and geopolitical factors that are currently at play.
What to know:
Trump’s new policies, such as his proposed trade tariffs on Mexico and Canada, have unnerved the market.
Investors, wary of inflation concerns and a potential tariff war, are avoiding risk assets like Bitcoin.
As Cointelegraph recently reported, Bitcoin’s rally post-Trump’s November election has lost steam amid a weakening global economy.
This has resulted in weaker demand for Bitcoin, according to Glassnode.
For instance, the cost basis of 1w–1m short-term holders flattened out above that of the longer-term holders (1m–3m) in Q1, “marking an early sign of weakening demand in the immediate term.”
Related: Bitcoin price drops 2% as falling inflation boosts US trade war fears
Bitcoin’s drop below the $95,000 level saw the 1w–1m cost basis slide below the 1m–3m cost basis, “confirming a transition into net capital outflows.”
Glassnode noted:
“This reversal indicates that macro uncertainty has spooked demand, reducing new inflows… and suggests that new buyers are now hesitant to absorb sell-side pressure, reinforcing the shift from post-ATH euphoria into a more cautious market environment.”
Bitcoin STH capital flow. Source: Glassnode
Until the current trend changes due to macroeconomic tailwinds, such as Fed rate cuts, Bitcoin could struggle to break out of the current range, leaving it vulnerable to pullbacks toward $70,000.
Another clear signal of Bitcoin’s stagnation is in the perpetual futures funding rates. BTC funding rates, which reflect the cost of holding long or short positions in crypto futures, are hovering close to 0%, indicating increasing indecisiveness among traders.
Bitcoin perpetual futures funding rates across all exchanges. Source: Glassnode
Without speculative fuel, Bitcoin is struggling to move in either direction, leaving its price stuck in a tight range as traders wait for the next catalyst.
Bitcoin price faces stiff resistance on the upside
Bitcoin also trades below key resistance areas, as shown in the chart below:
On March 9, BTC fell below the 200-day simple moving average (SMA) at $83,736.
This trendline has stifled the latest efforts for a sustained recovery.
BTC/USD daily chart. Source: Cointelegraph/TradingView
Popular crypto analyst Daan Crypto Trades says that the 200-day SMA at around $83,700 and the 200-day EMA at $86,000 are key levels as they are “solid indicators of the mid/long term trend and overall strength of the market.”
In other words, failure to produce a decisive close above the 200-day SMA and flipping it into a new support level could lead to a longer consolidation period for Bitcoin price.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
On Friday, cryptocurrency exchange Bybit was allegedly hacked by North Korea’s Lazarus group, which drained nearly $1.4 billion in ether (ETH) from the exchange. Following the hack, Arthur Hayes, BitMEX co-founder and claiming to be a major ether (ETH) holder, wrote a post on X to Ethereum co-founder Vitalik Buterin on whether he will “advocate to roll back the chain to help @Bybit_Official.” Meanwhile, in an X spaces session, Bybit’s CEO Ben Zhou revealed that his team had also reached out to the Ethereum Foundation to see if it was something the network would consider, noting that such a decision should be based on what the network’s community wants. Hayes’s post immediately provoked a fierce reaction from the Ethereum community, which was firm in its belief that it wouldn’t happen. Some even questioned whether the BitMEX founder was joking. CoinDesk reached out to Hayes over X to clarify his comments. Ethereum members, like the core developer teams, are vastly against “rolling back” the network because it would override core elements of decentralization. If Buterin decided on his own that it would happen, then that would be seen as the end of Ethereum’s ethos, which heavily involves various developer teams and other community members when it comes to the health and state of the blockchain. “Rolling back the chain would give ETH no purpose. What’s the point if you can just change rules,” said user @the_weso in a post on X. Some outside the Ethereum community pointed to the 2016 DAO hack as an example when $60 million in ETH was stolen. The network went forward with a hard fork, splitting the old network into two, and the new chain continued on as Ethereum. That hard fork was not a “rollback,” though; it was known as an “irregular state transition.” Ethereum technically can’t “roll back” the network because it relies on an account model, where accounts hold users’ ETH. At the time of the hack, developers upgraded their nodes to a new client or software. Those who didn’t upgrade their nodes were still on the old chain, which became known as Ethereum Classic. When the nodes upgraded to the new software, the stolen ETH could move from one Ethereum account address to the next. “The ‘irregular state change’ that they implemented at the time of the DAO hard fork was this: they airlifted all the ETH in the DAO smart contracts out to a refund contract that would send you 1 ETH for every 100 DAO tokens you sent in,” wrote Laura Shin of Unchained in a post on X. A relatively new Ethereum (ETH) layer-2 scaling solution has soared to the top of Santiment’s rankings of ERC-20 coins in terms of recent development activity. The crypto analytics firm notes that Starknet (STRK) clocked 401.97 notable GitHub events over the past 30 days. Starknet is a decentralized validity rollup, otherwise known as a zero-knowledge (ZK) roll-up. Rollups are solutions that execute transactions outside of Ethereum’s blockchain but record the transactional data. The project launched its token last February. STRK is trading at $0.455 at time of writing. The 119th-ranked crypto asset by market cap is up more than 7% in the past 24 hours. Starknet surged past last month’s most-developed project, the decentralized oracle network Chainlink (LINK), which registered 311.57 notable GitHub events. Ethereum itself was third, with 219.13 events. An ERC-20 project is a standard that developers use to issue tokens on the Ethereum blockchain. Santiment notes that it doesn’t count routine updates and utilizes a “better methodology” to collect data for GitHub events based on a “backtested process.” The analytics firm has previously said that heavy development activity centered around a crypto project indicates developers believe in the protocol. Development activity also suggests a given project is less likely to be an exit scam. Don’t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox   Generated Image: Midjourney Arthur Hayes, Murad’s Prediction For Meme Coins, AI & DeFi Coins For 2025 Expert Sees Bitcoin Dipping To $50K While Bullish Signs Persist Aptos Leverages Chainlink To Enhance Scalability and Data Access Bitcoin Could Rally to $80,000 on the Eve of US Elections Sonic Now ‘Golden Standard’ of Layer-2s After Scaling Transactions to 16,000+ per Second, Says Andre Cronje Institutional Investors Go All In on Crypto as 57% Plan to Boost Allocations as Bull Run Heats Up, Sygnum Survey Reveals Crypto’s Big Trump Gamble Is Risky Ripple-SEC Case Ends, But These 3 Rivals Could Jump 500x
Source link 
Source link Altcoin
New Ethereum Layer-2 Scaler Soars to Top of Santiment’s Rankings of ERC-20 Coins by Development Activity
Check Price Action
Follow us on X, Facebook and Telegram
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Source link 
Cryptocurrencies to watch this week: Binance Coin, Cronos, ZetaChain
What is Milady? The Edgy Ethereum NFT Community With Vitalik Buterin’s Support
Can Pi Network Price Triple if Binance Listing is Approved Before March 2025 Ends?
Gold ETFs Inflow Takes Over BTC ETFs Amid Historic Rally
Toncoin in ‘great entry zone’ as Pavel Durov’s France exit fuels TON price rally
XRP $15 Breakout? Not A Far-Fetched Idea—Analysis
Here’s why the Toncoin price surge may be short-lived
Wells Fargo Sues JPMorgan Chase Over Soured $481,000,000 Loan, Says US Bank Aware Seller Had Inflated Income: Report
BTC Rebounds Ahead of FOMC, Macro Heat Over?
Solana Meme Coin Sent New JellyJelly App Off to a Sweet Start, Founder Says
Toncoin open interest soars 67% after Pavel Durov departs France
Coinbase (COIN) Stock Decline Can’t Stop Highly Leveraged Long ETF Rollouts
Telegram founder Pavel Durov leaves France, Toncoin surges
Ethereum Cost Basis Data Signals Strong Support At $1,886
Solana Cofounder Advocates For Decisive Governance As SIMD-228 Proposal Fails
Arthur Hayes, Murad’s Prediction For Meme Coins, AI & DeFi Coins For 2025
Expert Sees Bitcoin Dipping To $50K While Bullish Signs Persist
Aptos Leverages Chainlink To Enhance Scalability and Data Access
Bitcoin Could Rally to $80,000 on the Eve of US Elections
Sonic Now ‘Golden Standard’ of Layer-2s After Scaling Transactions to 16,000+ per Second, Says Andre Cronje
Institutional Investors Go All In on Crypto as 57% Plan to Boost Allocations as Bull Run Heats Up, Sygnum Survey Reveals
Crypto’s Big Trump Gamble Is Risky
Ripple-SEC Case Ends, But These 3 Rivals Could Jump 500x
Has The Bitcoin Price Already Peaked?
A16z-backed Espresso announces mainnet launch of core product
Xmas Altcoin Rally Insights by BNM Agent I
Blockchain groups challenge new broker reporting rule
Trump’s Coin Is About As Revolutionary As OneCoin
Ripple Vs. SEC, Shiba Inu, US Elections Steal Spotlight
Is $200,000 a Realistic Bitcoin Price Target for This Cycle?
