Bitcoin’s price action seems poised for a bullish December, diverging from a historical trend of decreasing performance post-November’s downturn. Here are pivotal insights:
Key Insights:
- Structural changes in the market hint at a potential bullish December, given that BTC is reclaiming crucial technical levels.
- The divergence between macroeconomic liquidity and Bitcoin’s buying behavior suggests an evolving trend.
- Spot ETF inflows and changing liquidity are affecting the cycle performance historically driven by Bitcoin halvings.
Current Market Trends
Despite a lower November, Bitcoin managed to lie above its monthly volume-weighted average price (VWAP). Furthermore, an adjustment in market leverage from $94 billion to $60 billion indicates a healthier market for potential bullish moves.
Bitcoin returns in December after a red November.
Source: CoinGlass
As Bitcoin heads into December, the market appears to redefine its seasonal patterns, challenged by new liquidity and correlation changes observed this year.
“Now, if we combine the business cycle strength/weakness with Bitcoin cycles, then again, the correlation is quite clear. This stage resembles earlier bullish cycles, with significant returns still possible.”
(Translation: The current state of Bitcoin aligns with historical movements that preceded major price increases.)
In conclusion, while traditional seasonal trends may suggest caution, the current indicators reveal a stronger potential for bullish performance as we approach December.
