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Some may view Bitcoin's recent correction and the accompanying mass liquidations as a bearish signal. While there’s a case to be made for caution and short term downside, I present a bullish perspective. In 2016, 2020, 2023, and now in 2024, Bitcoin has fallen to the daily 25 EMA in December. Each time, it bounced off this support and rallied in January. Notably, these Decembers were all followed by new Bitcoin all-time highs the following year. If history rhymes, it’s reasonable to expect new Bitcoin all-time highs in 2025.
The chart series highlights the three prior instances of this pattern alongside the current price action. In 2016, Bitcoin rallied 56% within a month of bouncing off the 25 EMA. In 2020, the rally was a massive 138%, while 2023 saw a more tempered 22% bounce over the same period. If Bitcoin mirrors any of these moves in the next month, we could see prices ranging from $111K (on the lower end) to $200K (the higher end). While $200K Bitcoin in a month is a dream scenario, it’s not one I’d bet on just yet.
Currently, Bitcoin remains in a short-term bearish trend but is holding above the key 25 EMA, which suggests an upside bias into Christmas and early January. Could this be the setup Bitcoin needs to reclaim $100K and march toward new highs?
In the meantime, take advantage of these correction periods to accumulate discounted Bitcoin and strong altcoins. In previous Morning Notes, we’ve highlighted a selection of high-potential altcoins that are well-positioned to outperform and lead the market when bullish momentum returns.
For investors feeling underexposed or worried about missing out, this correction represents a golden opportunity. Strengthening your Bitcoin position or acquiring quality altcoins at a discount could yield substantial long-term gains. The crypto market is still in its early growth phase, providing believers with a prime environment to capitalize. Contact your Stormrake Crypto Broker today to seize this moment.
Stormrake Spotlight: Gala Games (GALA) ($0.0453)
Stormrake Spotlight: Gala Games (GALA) ($0.0453)
Gala is consolidating post-correction after recently hitting $0.064. If the coin continues to find support in the $0.040–$0.044 range, it could establish a solid base and potential launch zone for the next rally. Keep an eye on this range for signs of strength.
BTC/USD Key Levels and Price Action:
BTC/USD Key Levels and Price Action:
Bitcoin remains bearish in the short term, trading below all key moving averages and consistently creating lower highs. The 21 EMA has been a persistent resistance level. A break above this level would be the first sign of bullish momentum returning to the market. Until that happens, the short-term outlook remains bearish, with further downside likely.
BTC Total ETF Flows for 10 Dec: $ - 56.0 million
(ETF flow data is sourced from https://farside.co.uk/btc/ and reflects figures at the time of writing.)
ETH/USD Key Levels and Price Action:
ETH/USD Key Levels and Price Action:
Ethereum mirrors Bitcoin’s behavior, trading below all moving averages and forming lower highs and lows. It recently approached the critical support level of $3,557 and managed to bounce. However, the 21 EMA continues to act as resistance, rejecting ETH on multiple occasions. The downside remains the favored direction, with a likely retest of key support in the near term.
ETH Total ETF Flows for 10 Dec: $ + 21.8 Million
(ETF flow data is sourced from https://farside.co.uk/eth/ and reflects figures at the time of writing.)
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*All prices are denominated in USD unless stated otherwise*
Written by Alexandar Artis
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