Market Wrap: Analysts Expect Positive Bitcoin Returns in December
Bitcoin was stuck in a tight trading range between $55,000 and $58,000 on Wednesday as some analysts expect bullish sentiment to return this month given positive seasonal trends.
The bitcoin Fear & Greed Index entered “extreme fear” territory during last week’s sell-off. The index is at the lowest level since late-September, which preceded a BTC price bounce. Additionally, technical indicators are starting to rise from oversold levels as price pullbacks remain limited.
“Here we see a classic market pattern: consolidation at an important level in September, a breakout and subsequent steady and methodical buying throughout October and the first half of November, and finally a period of correction and cooling off in November while maintaining significant levels,” Alex Kuptsikevich, an analyst at FxPro, wrote in an email to CoinDesk.
“Now, the correction and consolidation look complete, and the ether looks set to rewrite historical highs,” Kuptsikevich wrote.
- Bitcoin (BTC): $56,799, -1.0%
- Ether (ETH): $4,568.9, -1.5%
- S&P 500: -1.2%
- Gold: $1,779, +0.2%
- 10-year Treasury yield closed at 1.421%
Litecoin (LTC) and ether (ETH) outperformed the CoinDesk 20, which includes some of the largest cryptocurrencies by market capitalization. Bitcoin was down roughly 9% last month, while Cardano’s ADA token and dogecoin (DOGE) were down about 20% during the same period.