Bitcoin Bulls Target $120K: A Historic December Rally in the Making
Bitcoin (BTC) has seen significant volatility recently, including a brief dip to a local low of $90,796 toward the end of November. However, market bulls have regained momentum, driving the price above $96,000. As December begins, Absolute Analysis has set a bullish target for Bitcoin, forecasting a potential surge to $120,000 by the end of the month.
Market Momentum and USD Weakness
The recent fluctuations in the U.S. Dollar Index (DXY) play a crucial role in Bitcoin's price movement. Historically, a weakening USD boosts Bitcoin's appeal as a store of value, attracting institutional and retail investors. With a softening dollar and a favorable macroeconomic environment, Absolute Analysis believes Bitcoin is positioned for a strong finish to 2024.
Key Drivers Behind the December Rally
Several factors are fuelling the optimism around Bitcoin as it heads into December:
Fed Rate Cut: The recent interest rate cut by the Federal Reserve has introduced liquidity into the market, creating a favourable environment for risk assets like Bitcoin.
Spot Bitcoin ETF Inflows: Increased institutional interest, particularly through spot Bitcoin ETFs, has supported Bitcoin's upward movement.
USD Weakness: A weaker dollar traditionally leads investors to seek alternative assets, and Bitcoin continues to stand out as an attractive option.
Absolute Analysis' December Prediction
Absolute Analysis points to a historical pattern where Bitcoin tends to perform strongly in December following U.S. presidential elections, with notable gains of 30.80% in 2016 and 46.92% in 2020. Based on these past cycles and current market conditions, Absolute Analysis predicts Bitcoin could reach $120,000 by the end of December 2024, with the potential for further growth if the macroeconomic factors remain favourable.
Bitcoin's Path to $120K
While Bitcoin has experienced a strong 2024, with a 10.76% gain in October and 37.99% in November, December’s performance is expected to be crucial. Over the past 11 years, Bitcoin has averaged a return of 5.45% in December, but with strong bullish momentum, Absolute Analysis believes the cryptocurrency could significantly outperform this historical trend. The weakening DXY, coupled with increasing institutional interest, suggests a strong rally for Bitcoin through the end of the year.
Future Ahead for Bitcoin
Bitcoin's trajectory through December will depend heavily on key factors such as the performance of the USD, ongoing ETF inflows, and broader market conditions. Absolute Analysis is confident that Bitcoin will achieve its $120,000 target by the end of the month, driven by macroeconomic trends and a favorable market environment. If these conditions hold, Bitcoin could close 2024 with a historic high, solidifying its position as the leading cryptocurrency.