Key Insights
- •Bitcoin's USD price is holding steady around $91,500 following a significant rally on Thanksgiving Day.
- •Expert analysis points to hidden bullish divergence trends as a potential driver for Bitcoin to reach new all-time highs.
- •Another expert suggests a possible Bitcoin rally aiming for the $112,000 mark.
Investors are closely monitoring Bitcoin's USD price movements as the cryptocurrency consolidates near the $91,500 level. This current price point represents a strong recovery from the previous week's sharp decline to $80,000, which had previously fueled bearish price predictions for Bitcoin.
Despite some experts warning of a potential continued dip in Bitcoin's price, possibly to $50,000 or lower, recent market trends and the current recovery suggest that the asset may be preparing for further upward momentum.
Factors such as renewed hopes for a Federal Reserve rate cut and a reversal in institutional interest have bolstered market confidence. Additionally, the lower price levels may continue to attract traders, especially following the recent significant drop in Bitcoin's USD value from $126,000 to $80,000.
In this context, market analysts have provided key insights into the crucial Bitcoin price levels to watch. Furthermore, historical performance data from December indicates that the cryptocurrency might experience upward momentum in the coming days, potentially reaching $110,000 or higher.
Bitcoin Price in Focus Amid Fed Rate Cut Bets
Bitcoin's price remained relatively stable, trading around $91,639 at the time of writing. Traders appear to have regained confidence in the asset, as demonstrated by the recent Thanksgiving Day rally in Bitcoin's USD price.
However, the trading volume for Bitcoin saw a decrease of over 32%, falling to $49 billion. This suggests that traders might be adopting a cautious approach, which is considered a common behavior among market participants, particularly after a significant price movement in any asset.
Bitcoin's recovery from a low of $80,600 to a 24-hour high of $91,897 further underscores the increasing confidence among traders. This surge is likely attributable to renewed speculation regarding a potential Federal Reserve rate cut in December.
Lower interest rates typically benefit riskier assets like Bitcoin, driving their prices higher. The current market sentiment indicates an 85% probability of a Fed rate cut next month, which may have fueled the recent price increase and could continue to support a bullish trend.
Bitcoin Price Prediction in December: Key Levels to Watch
The increasing odds of a Federal Reserve rate cut, coupled with renewed institutional investment, have contributed to bullish Bitcoin price predictions. For instance, US Spot Bitcoin ETFs have recorded inflows for the second consecutive day as of November 26.
Over the past two days, these investment instruments have seen total fund flows amounting to approximately $150 million. BlackRock's IBIT fund was a significant contributor, accounting for over $125 million in inflows.
Analyst Michael van de Poppe has shared a positive outlook for Bitcoin's price, highlighting the presence of hidden bullish divergence in the market. According to van de Poppe, this indicator suggests that the current trend is likely to continue, and the recent Bitcoin USD price drop might be setting the stage for a rebound to new record highs.
Experts attribute this potential rebound to renewed buying interest and an overall improvement in market sentiment. Additionally, analyst Ali Martinez has identified $112,340 as a crucial "ceiling to watch" for Bitcoin's price, based on the UTXO Realized Price Distribution (URPD) chart.
Conversely, Martinez has identified $84,570 as a key support level for Bitcoin. This implies that Bitcoin USD needs to maintain this support level to avoid further corrections, while the possibility of reaching $112,000 in December remains a feasible scenario.
Furthermore, historical data from CoinGlass indicates that Bitcoin tends to deliver positive returns during the month of December.
While historical performance is not a guarantee of future results, and this year's November performance serves as a prime example, experts remain optimistic due to the positive sentiment prevalent in the broader financial markets.