Bitcoin is closing out one of its most remarkable months in history, surging over $30,000 in November and marking a renewed bullish sentiment in the market. As we look ahead to December and beyond, investors are eager to understand whether Bitcoin's momentum can sustain itself into 2025. With macroeconomic conditions, historical trends, and on-chain data aligning in Bitcoinâs favor, letâs analyze whatâs happening and what it could mean for the future.
November 2024 wasnât just any month for Bitcoin; it was historic. Bitcoin's price rose from around $67,000 to nearly $100,000, an approximate 50% peak-to-trough increase, making it the best-performing month ever in terms of dollar increase. This rally rewarded long-term holders who endured months of consolidation after Bitcoin's all-time high of $74,000 earlier in the year.
Figure 1: Bitcoin has rallied over $30,000 in November.
View Live Chart
Historically, Q4 is Bitcoinâs strongest quarter, and November has often been a standout month. December, which has also performed well in past bull cycles, presents a promising outlook. But as with any rally, some short-term cooling might be expected.
Figure 2: Q4 has historically been Bitcoinâs best-performing period.
View Live Chart
Interestingly, Bitcoinâs rise occurred against the backdrop of a strengthening U.S. Dollar Strength Index (DXY), a scenario that typically sees Bitcoin underperforming. Historically, Bitcoin and the DXY have maintained an inverse relationship: when the dollar strengthens, Bitcoin weakens, and vice versa.
Figure 3: Bitcoin rallied even as the strength of USD increased.
View Live Chart
Similarly, the Global M2 money supply, another key metric, has shown a slight contraction recently. Bitcoin has historically correlated positively with global liquidity; thus, its current performance defies expectations. If liquidity conditions improve in the coming months, this could act as a powerful tailwind for Bitcoinâs price.
Figure 4: Global M2 YoY chart showing liquidity contraction.
View Live Chart
Bitcoinâs current trajectory is strikingly similar to past bull markets, particularly the 2016â2017 cycle. That cycle began with gradual price increases before breaking key resistance levels and entering an exponential growth phase.
In 2017, Bitcoinâs price broke out from a key technical level of around $1,000, leading to a parabolic rally that peaked at $20,000, a 20x increase. Similarly, the 2020-2021 cycle saw Bitcoin rise from $20,000 to nearly $70,000 after breaking above the crucial YoY Performance threshold.
Figure 5: Current BTC performance showing parallels to price prior to breaking previous major resistance levels.
View Live Chart
If Bitcoin can break out decisively from this historic level and above the key $100,000 resistance, we may witness a repeat of these explosive price movements as BTC enters its exponential phase of bullish price action.
A key factor underpinning Bitcoinâs strength is the continued accumulation by institutions. Bitcoin ETFs are adding billions of dollars worth of BTC to their holdings, and corporations like MicroStrategy have doubled down on their Bitcoin strategy, now holding close to 400,000 BTC. Even with BTC rallying to new all-time highs, âsmart moneyâ is scrambling to accumulate as much as possible to ensure theyâre not left behind.
Figure 6: Institutions are not waiting for a retracement to accumulate BTC.
View Live Chart
This institutional demand indicates growing confidence in Bitcoin as a long-term store of value, even in volatile market conditions. Such accumulation also tightens the available supply, creating upward pressure on prices as demand increases.
While December has historically been a strong month for Bitcoin, short-term volatility could temper gains as the market digests Novemberâs sharp rally. Although given the aggressive accumulation weâre witnessing from institutional participants anything is possible.
Longer-term, however, the outlook remains exceptionally bullish. The obvious level to watch is $100,000 as the next major milestone, which, if breached, could pave the way for a much larger rally in 2025. Bitcoin is entering one of its most exciting phases yet, with the stars seemingly aligning across macroeconomic, technical, and on-chain metrics.
For a more in-depth look into this topic, check out a recent YouTube video here: The BIGGEST Bitcoin Month EVER - So What Happens Next?
The BEST saving of the year is here. Get 40% Off all our annual plans.
UPGRADE YOUR BITCOIN INVESTING NOW
All for just $15/month with the Black Friday deal. This is our biggest sale all year.
UPGRADE YOUR BITCOIN INVESTING NOW
Don't miss out!
https://www.bitcoinmagazinepro.com/subscribe/
Full story here:
Novemberâs Record-Breaking Performance
November 2024 wasnât just any month for Bitcoin; it was historic. Bitcoin's price rose from around $67,000 to nearly $100,000, an approximate 50% peak-to-trough increase, making it the best-performing month ever in terms of dollar increase. This rally rewarded long-term holders who endured months of consolidation after Bitcoin's all-time high of $74,000 earlier in the year.
Figure 1: Bitcoin has rallied over $30,000 in November.
View Live Chart
Historically, Q4 is Bitcoinâs strongest quarter, and November has often been a standout month. December, which has also performed well in past bull cycles, presents a promising outlook. But as with any rally, some short-term cooling might be expected.
Figure 2: Q4 has historically been Bitcoinâs best-performing period.
View Live Chart
The Role of the Dollar and Global Liquidity
Interestingly, Bitcoinâs rise occurred against the backdrop of a strengthening U.S. Dollar Strength Index (DXY), a scenario that typically sees Bitcoin underperforming. Historically, Bitcoin and the DXY have maintained an inverse relationship: when the dollar strengthens, Bitcoin weakens, and vice versa.
Figure 3: Bitcoin rallied even as the strength of USD increased.
View Live Chart
Similarly, the Global M2 money supply, another key metric, has shown a slight contraction recently. Bitcoin has historically correlated positively with global liquidity; thus, its current performance defies expectations. If liquidity conditions improve in the coming months, this could act as a powerful tailwind for Bitcoinâs price.
Figure 4: Global M2 YoY chart showing liquidity contraction.
View Live Chart
Parallels to Past Bull Cycles
Bitcoinâs current trajectory is strikingly similar to past bull markets, particularly the 2016â2017 cycle. That cycle began with gradual price increases before breaking key resistance levels and entering an exponential growth phase.
In 2017, Bitcoinâs price broke out from a key technical level of around $1,000, leading to a parabolic rally that peaked at $20,000, a 20x increase. Similarly, the 2020-2021 cycle saw Bitcoin rise from $20,000 to nearly $70,000 after breaking above the crucial YoY Performance threshold.
Figure 5: Current BTC performance showing parallels to price prior to breaking previous major resistance levels.
View Live Chart
If Bitcoin can break out decisively from this historic level and above the key $100,000 resistance, we may witness a repeat of these explosive price movements as BTC enters its exponential phase of bullish price action.
Institutional Adoption and Accumulation
A key factor underpinning Bitcoinâs strength is the continued accumulation by institutions. Bitcoin ETFs are adding billions of dollars worth of BTC to their holdings, and corporations like MicroStrategy have doubled down on their Bitcoin strategy, now holding close to 400,000 BTC. Even with BTC rallying to new all-time highs, âsmart moneyâ is scrambling to accumulate as much as possible to ensure theyâre not left behind.
Figure 6: Institutions are not waiting for a retracement to accumulate BTC.
View Live Chart
This institutional demand indicates growing confidence in Bitcoin as a long-term store of value, even in volatile market conditions. Such accumulation also tightens the available supply, creating upward pressure on prices as demand increases.
Conclusion
While December has historically been a strong month for Bitcoin, short-term volatility could temper gains as the market digests Novemberâs sharp rally. Although given the aggressive accumulation weâre witnessing from institutional participants anything is possible.
Longer-term, however, the outlook remains exceptionally bullish. The obvious level to watch is $100,000 as the next major milestone, which, if breached, could pave the way for a much larger rally in 2025. Bitcoin is entering one of its most exciting phases yet, with the stars seemingly aligning across macroeconomic, technical, and on-chain metrics.
For a more in-depth look into this topic, check out a recent YouTube video here: The BIGGEST Bitcoin Month EVER - So What Happens Next?
Black Friday: Our Biggest Ever Sale
The BEST saving of the year is here. Get 40% Off all our annual plans.
UPGRADE YOUR BITCOIN INVESTING NOW
- Unlock +100 Bitcoin charts.
- Access Indicator alerts - so you never miss a thing.
- Private TradingView indicators of your favorite Bitcoin charts.
- Members-only Reports and Insights.
- Many new charts and features coming soon.
All for just $15/month with the Black Friday deal. This is our biggest sale all year.
UPGRADE YOUR BITCOIN INVESTING NOW
Don't miss out!
https://www.bitcoinmagazinepro.com/subscribe/Full story here:
![[DK]](/data/avatars/s/57/57999.jpg?1720990206){kind=avatar}
