Bitcoin Traders Now Target $120K as Bullish 'Santa Claus Rally' Gains Steam

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Bitget Academy2024/12/17 05:25

By:Bitget Academy

Bitcoin (BTC) set a fresh record above $106,000 earlier Monday, with traders now targeting the $120,000 level as the asset moves into the second half of a seasonally bullish December. Recent catalysts that have supported growth in BTC include increased speculation of U.S. president-elect Donald Tru

Bitcoin (BTC) set a fresh record above $106,000 earlier Monday, with traders now targeting the $120,000 level as the asset moves into the second half of a seasonally bullish December.

Recent catalysts that have supported growth in BTC include increased speculation of U.S. president-elect Donald Trump creating a federal bitcoin reserve, and crypto companies such as Riot Platforms and MicroStrategy purchasing billions worth of the asset in past weeks.

Optimism in U.S. policies are driving bitcoin ETFs inflows higher, contributing to increased prices, some point out. “TradFi inflows now dominate all sentiment and price action in BTC unlike any other prior crypto cycle before,” shared Augustine Fan, head of insights at SOFA, in a Telegram message to CoinDesk. “This influence will only grow as more and more traditional firms finally need to have a digital asset policy given the immense revenue opportunities and sea-change in the political environment.”

Recent price action has shown bitcoin forming higher lows, indicative of a sustained uptrend. The formation of a bull flag or a bullish continuation pattern after recent highs could signal further upward movement.

This month tends to be historically bullish for bitcoin in a move that’s colloquially termed the "Santa Claus Rally." Data from the past eight years shows that bitcoin ended December in the green six times since 2015, running at least 8% to as much as 46% (in the outlier year of 2020).

Seasonality is the tendency of assets to experience regular and predictable changes that recur every calendar year. While it may look random, possible reasons range from profit-taking around tax season in April and May, which causes drawdowns, to the generally bullish November and December, a sign of increased demand ahead of holiday season.

Meanwhile, some traders are now targeting the $120,000 level and above for BTC in the coming year.

Source: CoinDesk

Futures Market Updates

Funding rates show bullish sentiment on both BTC and ETH markets.

Bitcoin Futures Updates

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Funding Rate: 0.0100%

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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