Bitcoin Poised For December Surge As Historical Patterns Suggest Strong Upside Ahead
December 06 2023 - 7:00PM
NEWSBTC
As the eagerly awaited Bitcoin (BTC) exchange-traded fund (ETF)
verdict approaches, excitement and anticipation continue to grow in
the cryptocurrency market. According to a report by K33
Research, the upcoming decision, expected between January 8 and
January 10, has been a significant factor behind Bitcoin’s positive
momentum since October. Institutional demand remains robust, with
traditional investors strongly interested in adding long BTC
exposure. Bitcoin Set For Bullish December? Bitcoin has
displayed a notable tendency to surge higher in the lead-up to
major events, creating a sense of enthusiasm and driving prices
upward. This phenomenon has been observed across various
significant milestones in the cryptocurrency’s history.
According to the report, examples include Bitcoin’s peak coinciding
with the launch of the Chicago Mercantile Exchange’s (CME) BTC
futures in 2017, its spike coinciding with Coinbase’s public
listing in April 2021, and its peak on the day El Salvador declared
Bitcoin legal tender in September 2021. Similarly, Bitcoin reached
its peak on the date of VanEck’s spot ETF deadline in November
2021. These instances highlight the potential for Bitcoin to
experience significant price movements as the ETF verdict draws
near. Related Reading: Solana-Powered Helium (HNT) Spikes By 145%,
Analyzing The Drivers Of The Surge The report emphasizes the
substantial demand from institutional investors seeking exposure to
Bitcoin. BTC exchange-traded products (ETPs) witnessed inflows of
nearly 40,000 BTC in November, while CME open interest reached and
maintained all-time highs. Futures premiums have also surged to
20%, indicating the strong interest from institutional
players. In contrast, retail participation has shown signs of
stagnation. Offshore flows have remained shallow, and
Bitcoin-denominated open interest in BTC perpetual contracts is
currently at yearly lows. These factors suggest that institutional
flows continue to be the driving force behind Bitcoin’s solid
market strength. Based on the historical pattern of event-driven
price movements and the sustained institutional demand, the report
maintains a positive outlook for Bitcoin in December. As the
ETF verdict approaches, K33 Research’s report suggests that the
narrowing time window is expected to fuel enthusiasm and drive
prices higher. However, it is worth noting that once the event
occurs, prices may experience a temporary surge before potentially
stabilizing, according to the report. BTC’s Bull Run
Indicator Renowned crypto analyst Ali Martinez has identified a
significant development in the Bitcoin market that suggests a
bullish outlook for the cryptocurrency. According to
Martinez, the Realized Price of Bitcoin has surpassed the Long-Term
Holder Realized Price, signaling an increase in market momentum and
attracting new investors willing to purchase Bitcoin at higher
prices. Martinez’s analysis highlights that similar
occurrences in the past have preceded substantial price surges,
further fueling optimism regarding Bitcoin’s future
performance. The Realized Price of Bitcoin refers to the
average price at which all previously transacted coins were
acquired. It considers the price at which each Bitcoin unit was
last moved on the blockchain. On the other hand, the
Long-Term Holder Realized Price focuses specifically on coins held
by long-term investors, providing insights into their average
acquisition price. When the Realized Price surpasses the
Long-Term Holder’s Realized Price, it suggests that newer investors
are entering the market and are willing to buy Bitcoin at higher
valuations. Related Reading: Tether (USDT) Cap Approaches $90
Billion: Why This Affects Bitcoin As seen in the above chart,
Bitcoin experienced significant gains following this bullish signal
on three separate occasions in the past. Specifically, the
cryptocurrency surged 12,736%, 4,474%, and 819%, respectively,
following similar events. In addition to Martinez’s bullish
outlook for BTC, the largest cryptocurrency on the market has
demonstrated relatively stable price action above $44,000 in the
past hour. This stability increases the potential for
continued upside and consolidation above key levels, positioning
Bitcoin for further gains and surges in the future. It remains to
be seen if the cryptocurrency will see any corrections following
its impressive 16% surge over the past few days. Featured
image from Shutterstock, chart from TradingView.com
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