Bitcoin’s price stability in December 2024 coincides with a surge in alternative cryptocurrencies. After reaching a high of $99,600, Bitcoin is consolidating between $92,000 and $98,000. Analysts predict a potential rise to $100,000, influenced by an anticipated Federal Reserve interest rate cut. Current trading shows a bullish outlook with significant support levels noted.

As December 2024 progresses, Bitcoin has maintained a period of stability following a significant price surge in November. This market environment coincides with a new altcoin season, where notable cryptocurrencies such as Solana (SOL), Tron (TRX), Binance Coin (BNB), and Shiba Inu (SHIB) have experienced substantial gains. Currently, Bitcoin is in a consolidation phase, trading between $92,000 and $98,000 after reaching an impressive peak of $99,600 late last month.

The data indicates a sharp decline in daily profits on exchanges, averaging $277 million—a 42% decrease from the peak of $481 million observed on November 16. Such a decline suggests diminished profit-taking activity, indicating market consolidation. Nevertheless, Bitcoin’s price has shown a slight increase of approximately 1.67% today, with analysts suggesting that prices may rise sharply, potentially reaching the $100,000 mark by the end of December.

A pivotal factor in this price movement may be the anticipated 0.25% interest rate cut by the Federal Reserve, slated for December 18, which holds a 74% likelihood according to the CME FedWatch Tool. Historically, when monetary policies ease, cryptocurrencies tend to rally, as lower rates encourage investments in riskier assets, including Bitcoin and altcoins.

At the moment, Bitcoin (BTC) is trading at $95,844.72, appearing close to the upper Bollinger Band at $100,486.3, suggesting an upward trajectory may be possible. The current trading price is well above both the 50-day and 100-day moving averages, indicating a sustained bullish trend. Nevertheless, should weakness emerge, significant support levels exist at $92K and $89K, offering safety nets against declines. Observing the price action, should Bitcoin surpass the $97K resistance, it could target ranges between $105K and $110K by December’s conclusion.

Bitcoin’s market behavior can often be influenced by broader economic indicators, most notably monetary policy decisions made by the Federal Reserve. As investors closely monitor interest rates, a cut typically leads to increased investment in alternative assets such as cryptocurrencies. In December 2024, Bitcoin’s trading activity reflects the ongoing consolidation phase, which occurs when prices stabilize following significant movements, allowing both investors and traders to reassess market conditions.

In conclusion, Bitcoin remains poised for potential price increases as it approaches the end of December 2024. The anticipated interest rate cut by the Federal Reserve could catalyze further demand for cryptocurrencies, with the possibility of Bitcoin testing the $100,000 psychological threshold. However, the market remains on watch for any signs of downturn, with notable support levels established to safeguard against significant declines.

Original Source: www.banklesstimes.com

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