Traders marked yesterday with jubilations as BTC crossed its all-time high of $19,783 and got as high as $19,956. Going against all odds, traders rallied the market up during the weekend and were able to push BTC to surpass its all-time high. All indications are suggesting that traders are not ready to surrender their gains.
Another factor that could be responsible for the new all-time is the weakened U.S. dollars. Almost all the world commodities are valued in dollars; if the demand for any of the world’s most traded things (like crude oil) is not in need as before, it causes the U.S. dollar to weaken. When USD got low, bulls saw the opportunity and seized it; the result is the new all-time high we have today.
USDGBP; 5 minutes charts
BTCUSD; 5 Minutes Chart
An Outlook of December
According to the monthly BTC heatmap, all may not be bullish, bullish for bitcoin as bears will also play a vital role in the market. Previous data also suggest that bitcoin may experience a massive sell-off this month. Casting our minds back to 2017, when BTC hit the first all-time high above $19k, could be vital predictions to what will happen this December.
Once BTC was at its all-time high in 2017, prices started fluctuating the next week, and BTC experienced a massive sell-off that brought the price down. The heatmap shows that BTC recovered from the dip and surged later that month.
The 2017 surge is the closest we can get to the situation we have at hand now. Going by that scenario, prices may hit another all-time high due to the bullish momentum (that is still under probability). One thing that will indeed happen in December is the sell-off, and from all indications, BTC will recover.
The worst-case scenario could be in 2013 when prices surged more than 400% in November and dipped by more than 30% in December. The 2013 scenario will not play out due to various reasons. One of these reasons is BTC market cap; an increased market shows increased trading, and traders won’t let a dip like that takes place.
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Author: Gideon Geoffrey