Bitcoin (BTC) Price Estimate December 2024 – Rise or Fall?

The crypto market is bouncing back on Wednesday after a sell-off earlier in the week and for now, everything indicates that we could see new record highs for many cryptocurrencies. After having fallen to as low as $94,100 at one point earlier this week, Bitcoin has advanced to $101,000, up more than 6% over the past 24 hours.

According to CryptoQuant’s data, the supply of BTC held on exchanges has fallen to levels not seen since the summer of 2018, signaling strong holding sentiment among investors. This is certainly positive information and according to many crypto analysts, Bitcoin could be gearing up for a significant short-term jump.

The move higher comes alongside a sizable rally in the U.S. stock market following the Consumer Price Index report that matched economist forecasts. The news was enough to convince traders that the Federal Reserve is certain to trim its benchmark fed funds rate another 25 basis points at its meeting next week. So where is the price of Bitcoin (BTC) going next, and what can we expect from the rest of December 2024?

Today, Crypto Lists will discuss Bitcoin (BTC) price estimates from a technical and fundamental analysis perspective. Please note that there are also many other factors to consider when entering a position, such as your time horizon, willingness to risk, and how much margin you have if trading with leverage.

Donald Trump’s victory has a positive impact

When Donald Trump clinched victory in the presidential election, the financial markets were abuzz with speculation and uncertainty. Traditional investors scrambled to interpret what his presidency would mean for the global economy, while a quieter but rapidly growing crowd turned their attention to an important player: Bitcoin.

The moment the election results were announced, the markets jolted. Stock futures wavered, the dollar faced pressure, and whispers of inflation filled the air. Trump’s promises of deregulation, ambitious fiscal policies, and a potential reshaping of international trade left investors uneasy about the future of traditional assets. But for those watching Bitcoin, the uncertainty felt like an opportunity.

Bitcoin, a decentralized digital currency free from government control, suddenly seemed more appealing in this climate. It wasn’t tied to the policies of any one nation or subject to the same risks as traditional markets. For many, it represented a hedge against the turbulence that might come with a Trump presidency.

As the dust settled in the days following the election, analysts noticed something remarkable: Bitcoin was climbing. It wasn’t just a coincidence. Data showed that more people were moving their money into Bitcoin, betting on its independence from the political upheavals shaping traditional markets. The supply of Bitcoin on exchanges began to dwindle, a sign that investors were holding their assets instead of trading them—a clear vote of confidence in its long-term value.

For Bitcoin enthusiasts, it felt like a pivotal moment. What had started as a niche technology was now being recognized as a legitimate asset in uncertain times. The Trump victory had sent shockwaves through traditional finance, but for Bitcoin, it was a tailwind—a story of resilience and rising trust in the power of decentralized currency.

Rating: 9.5/10
Supply: 18,925,000 / 21,000,000
Release date: January 3, 2009

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The supply of BTC held on exchanges has fallen

Latest CryptoQuant data reveals that the supply of Bitcoin held on exchanges has dropped to levels last seen in the summer of 2018. This sharp decline suggests that investors are opting to hold their BTC rather than sell, a clear sign of strong confidence in the asset. Many crypto analysts view this as a bullish signal, indicating that Bitcoin could be on the verge of a significant short-term rally.

Bitcoin’s Network Value to Metcalfe (NVM) ratio is also worth mentioning. The metric provides insights into the relationship between the asset’s market capitalization and its adoption or usage. Readings below 2 typically indicate that BTC might be undervalued, suggesting a potential price uptrend. Currently, the NVM is set at approximately 1.5.

The positive news is that Alabama state auditor Andrew Sorrell has endorsed the establishment of a state Bitcoin reserve in an interview with a local publication. Sorrell, a former state legislator and outspoken advocate for cryptocurrency, shared his thoughts with 1819 News. He emphasized that adopting cryptocurrency could boost the state’s economy by attracting businesses and strengthening financial stability. Andrew Sorrell said:

“Crypto is here to stay and the fight for which states will benefit from it has begun. The states that are first to adopt a tax and regulatory framework that are friendly to crypto will attract business and investment.”

However, some crypto analysts suggest that Bitcoin might be in overbought territory, signaling a potentially overheated market. If Bitcoin does retreat from its important support at $90,000, significant sell-offs could follow, as traders and investors rush to secure their profits. If the price of Bitcoin falls below important support levels like $85,000 or $80,000 it might worsen the situation and drag the entire cryptocurrency market down with it.

Investors should keep in mind that Bitcoin carries its risks as an investment, and history has shown many times that its price can fluctuate dramatically over short periods, leading to substantial gains or losses. Undertaking comprehensive research and evaluating one’s risk tolerance are fundamental measures prior to committing to any investments within this sphere.

Technical analysis for Bitcoin (BTC)

Bitcoin (BTC) has advanced from $66,783 to $104,000 since November 04, 2024, and the current price stands at $100,675. A break above the $105,000 level would indicate that BTC could probably test the price level at $110,000. As long the price of Bitcoin (BTC) is above the line that I marked on the chart below, there is no risk of a bigger sell-off.

Important support & resistance levels for Bitcoin (BTC)

On this chart (the period from April 2024), I marked important support and resistance levels that can help traders understand where the price could move. Bitcoin currently remains supported, and if the price advances above $110,000, the next target could be an important resistance level at $120,000. The strong support level is $90,000, and if the price breaks this level, it would be a “SELL” signal, and we have the open way to $85,000. If the price drops below $80,000, which also represents an important support level, the next target could be located around $70,000.

What speaks for the rise in the Bitcoin (BTC) price

Bitcoin’s recent surge is closely tied to Donald Trump’s decisive victory in the U.S. presidential election. Often referred to as “digital gold,” Bitcoin’s reputation as a store of value has made it particularly appealing to investor groups aligned with Trump’s base, fueling its rise. Donald Trump’s critical stance on centralized financial systems, coupled with his unpredictable approach to economic policy, may lead to even higher interest in decentralized assets. Analysts and traders also often closely watch the activity of crypto whales because the behavior of crypto whales can influence market sentiment and an increase in the number of big transactions for Bitcoin is something that could drive the price higher. When a whale makes a substantial buy, it can be seen as a bullish sign, potentially attracting more buyers. Bitcoin currently remains supported, and if the price advances above $110,000, the next target could be an important resistance level at $120,000.

What indicates a downfall for Bitcoin (BTC)

The cryptocurrency market has historically been known for its volatility, and while efforts were being made to stabilize the market, fluctuations are still expected to be a common occurrence. Bitcoin has an important support level at $90,000, and a break below this level would indicate that BTC could probably test the next support level which stands at $80,000. A surge in Bitcoin held on exchanges can indicate investors are preparing to sell, creating downward price pressure. Fewer transactions or a drop in active wallet addresses can signal waning interest or adoption.

What do analysts and experts say?

Crypto analysts are linking Bitcoin’s recent positive trend to Donald Trump’s decisive victory in the U.S. presidential election and they speculate that a return of Trump’s policies could lead to another wave of cryptocurrency adoption. Donald Trump’s critical stance on centralized financial systems, coupled with his unpredictable approach to economic policy, may lead to renewed interest in decentralized assets.

The latest data from CryptoQuant shows that the amount of Bitcoin held on exchanges has fallen to levels not seen since the summer of 2018. This significant drop suggests that investors are choosing to hold onto their BTC instead of selling, reflecting growing confidence in the cryptocurrency. Many analysts see this as a bullish indicator, signaling that Bitcoin could be poised for another substantial short-term rally. However, investors should remember that Bitcoin comes with its own risks and its price history shows frequent, sharp fluctuations that can lead to significant gains but also steep losses.

Disclaimer: Crypto is extremely volatile and not suitable for everyone to invest in. Never speculate with money that you cannot afford to lose. The information on this site is presented for educational purposes only and should not be construed as investment or financial advice.