Whales Drive Bitcoin’s December Rally: Where is the BTC Price Headed?

Bitcoin’s price action in December 2024 has been marked by milestones, drawing observations from traders and industry analysts.

Bitcoin price enjoyed a rollercoaster ride in the final stretch of 2024, with key milestones and observations noted by traders and industry analysts. As the crypto breached crucial resistance levels and attained a new ATH, market dynamics shifted with traders and large stakeholders reacting to the changing conditions.

Data from blockchain analytics platform Santiment and an analysis by Crypto Patel highlighted the interplay between market sentiment and technical indicators during this period.

Market Sentiment Shifts as Bitcoin Surges Past $100,000

According to Santiment, discussions about Bitcoin on platforms like X, Reddit, and Telegram soared, reflecting the crypto community’s expectations and concerns.

In late November, many traders anticipated a retracement to $90,000 as Bitcoin struggled to maintain momentum. This sentiment followed a period of heightened activity linked to what some called the “Trump Pump.”

However, to the surprise of many, Bitcoin price soared past $100k in early December. This surge triggered a wave of FOMO among retail traders. Moreover, the rally continued with Bitcoin reaching $108.3k by mid-December.

As speculations of a $110k target surged, many smaller traders viewed this as an opportunity to lock in profits. But Santiment's analysis suggests that retail traders' optimism often signals the possibility of market reversals, leaving larger investors to capitalize on these shifts.

The Role of Whales and Sharks in Bitcoin’s Movement

Santiment’s data highlighted the actions of Bitcoin holders with 10 or more coins — known as whales and sharks — who continued to accumulate throughout December. These larger market participants have a history of influencing price trends by strategically buying during market downturns and selling during peaks.

The report suggests aligning strategies with these key stakeholders or adopting a contrarian approach to retail sentiment for better outcomes. While retail traders often react to short-term market conditions, whales and sharks take a longer-term view, capitalizing on the volatility in crypto markets.

Also Read: Can VeChain (VET) Price Spike to $1 During This Bull Run?

Technical Analysis Points to Potential Corrections

Crypto Patel's Elliott Wave analysis provided further context to Bitcoin's December performance. Patel identified a Wave 3 top at $107k, followed by a correction near $93k, aligning with a key Fibonacci retracement level. He also highlighted $97k as a critical support level. If this level holds, Bitcoin could resume its upward trajectory toward $103k and beyond.

However, a failure to maintain support at $97k might lead to a dip to $85k, potentially marking the end of a Wave 4 correction. Patel's analysis suggests this could set the stage for a new all-time high as the bull market continues.

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