Can Bitcoin soar 70-100% in December like it did in previous cycles?

The market-wide crash in the last week of November dropped Bitcoin to a 50-day low of $ 53,300. Then it began to bounce back amid a flurry of bullish news in the market.

November should see a return of nearly 40% for Bitcoin, but it fell more than 20% when Moonovember’s predictions failed.

Even so, Bitcoin closed over $ 60,000 a month to insure the market good lead.

The return of the cops?

Bitcoin price finally rebounded nearly 4% on November 29th as the monthly candle closed above the $ 60,000 mark. While the broader market appears to be showing a bearish sign in recent weeks, data from Glassnode has shown Bitcoin is down 17% versus ATH, making the latest correction the lightest of the year yet.

Source: Glassnode

In the options market, nominal open interests (OI) ranged between $ 12 billion and $ 14 billion in October and November. Total open interest dropped to around $ 10 billion last week after the contract expired in November.

The open interest of futures is also in BTC considerations well below the all-time highs (ATHs), nominally just over 400,000 BTC. Overall, the open interest leverage on futures and options is close to the ATH value, which gives rise to concerns about potentially excessive dumps. While the financing rate indicates a slightly positive trend, both long squeeze and short squeeze scenarios can be implemented in the short term.

Growing market?

The liveliness indicator rises along with bitcoin activity, which highlights spending behavior, while the decline records accumulation behavior. The vibrancy band appears when the 30-day vibrancy average is lower than the annual average, which occurs during periods of high accumulation.

Interestingly, BTC’s Liveliness Ribbon has only been printed five times in Bitcoin’s history, four of which are near market lows, the fifth last week. This shows how steadfast and patient the keepers still are.

Source: TXMC Trades

This is also a good case scenario that highlights BTC’s role as a store of value as the market evolves.

While BTC’s long-term maturity outlook looks good, BTC’s short-term performance could still take some consolidation. December is generally a good month. However, the failed November forecast made participants skeptical.

What’s noteworthy is that BTC rose more than 100% in December 2017. In 2020 it increased by more than 70%. It remains to be seen whether December will develop as it has historically seen.

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Mr. Teacher

According to AMBCrypto

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