As the holiday season unfolds, Bitcoin has demonstrated a robust upward trajectory, with its price surpassing $98,000 on December 25, 2024.
As the holiday season unfolds, Bitcoin has demonstrated a robust upward trajectory, with its price surpassing $98,000 on December 25, 2024. This surge has reignited discussions among traders and analysts regarding the cryptocurrency’s future direction.
Prominent trader Skew has highlighted a “clean” bullish divergence in the Relative Strength Index (RSI) on the 4-hour chart. He noted that the current price movement is retesting the systematic trend that previously propelled Bitcoin from $68,000 to $108,000. Skew described the unsuccessful attempts to drive the price lower as “failed action,” suggesting sustained market demand.
However, Skew advises a cautious approach. He underlines the need for monitoring important levels, such as the Point of Control (PoC), to ensure that the bullish trend continues. Notably, the market behavior during the Christmas season, which is usually characterized by reduced trading volumes, adds uncertainty to these findings.
Meanwhile, institutional interest continues to be a significant driving force behind Bitcoin's value, adding to the overall optimistic sentiment in the market. Large investors still regard Bitcoin as a store of value, especially during periods of economic turmoil. Even recently, massive investments in Bitcoin have been observed, such as the large-scale purchases by MicroStrategy in the recent weeks, indicating strong positive conviction in the prospects of Bitcoin. Such institutional interest not only supports Bitcoin's price but also adds to the larger narrative of cryptocurrency as a mainstream asset class. As more institutional investors adopt Bitcoin, the demand for the digital currency is expected to increase, sustaining the upward momentum.
On the other hand, global market conditions remain somewhat mixed, with varying trends in different regions. However, there are signs of increasing demand for Bitcoin in certain areas. For instance, Bitcoin purchases have increased dramatically in South Korea, especially amid market downturns. Speculative short-term holders have been the main drivers of this rising demand, indicating a growing appetite for Bitcoin in the region.
This regional demand is not limited to South Korea. There are indications that interest in Bitcoin is growing in other markets, especially in nations where there is high inflation or economic instability. As these regions continue to embrace Bitcoin as a hedge against economic uncertainty, its global appeal is expanding.
As we look ahead, the outlook for Bitcoin remains cautiously hopeful, but the road ahead is not without hurdles. Analysts are divided on whether Bitcoin will retain its positive momentum or suffer a severe downturn. Others caution that regulatory obstacles or macroeconomic variables may cause short-term volatility, even though others believe the cryptocurrency might hit new all-time highs by early 2025.
All eyes will be on Bitcoin's capacity to sustain support above crucial levels in the upcoming months, as well as whether institutional and local demand will keep pushing the market higher. In a continuing rally with Bitcoin, investors should be sure to be extra watchful of the change according to the dynamic landscape.
