Bitcoin Price Analysis: Journey to $100,000
The potential for Bitcoin (BTC) to reach $100,000 hinges on the balance between short-term holder (STH) demand and long-term holder (LTH) profit-taking, as per the latest edition of the “Bitfinex Alpha” report.
Recent Price Movements
- Bitcoin saw an 8.64% pullback but closed November at a record monthly high of $96,506.
- The recovery followed a dip to $90,911 and November ended with a 37.3% gain, the second-best monthly performance of the year.
December Outlook
Bitcoin’s strong momentum heading into December signals a positive trend, especially considering historical performance during halving years. Past halving years have shown exceptional price growth, with an average increase of 38.86%. However, December might bring heightened volatility, coinciding with a significant options expiry.
Supply Trends
- LTHs have been distributing Bitcoin holdings, with over 508,990 BTC distributed in the past two weeks.
- STH supply is nearing its cycle high, with around 3.25 million BTC held by short-term buyers.
- The Long-Term Holder SOPR currently sits at 2.6, indicating potential for further upward movement.
Outlook for December
If the market can absorb the supply from LTHs, Bitcoin’s path to $100,000 becomes more likely. December could see neutral to positive performance, but volatility towards the end of the month may lead to short-term price fluctuations. Traders and investors need to monitor supply trends and STH demand to predict Bitcoin’s next move.
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