Bitcoin’s price action in December 2024 has been marked by milestones, drawing observations from traders and industry analysts. With the crypto breaking through key resistance levels and reaching a new ATH, market dynamics have shifted as traders and large stakeholders react to changing conditions.
Data from blockchain analytics platform Santiment and an analysis by Crypto Patel shed light on the interplay between market sentiment and technical indicators during this period.
What you'll learn 👉
Market Sentiment Shifts as Bitcoin Surpasses $100,000
Santiment reports that discussions about Bitcoin intensified on platforms like X, Reddit, and Telegram, reflecting the crypto community’s expectations and concerns.
In late November, many traders anticipated a retracement to $90,000 after Bitcoin struggled to maintain momentum. This sentiment followed a period of heightened activity linked to what some called the “Trump Pump.”
Contrary to these predictions, Bitcoin price climbed past $100k in early December. This surge triggered a wave of FOMO among retail traders. Besides, the surge continued, with Bitcoin reaching $108.3k by mid-December.
As speculations of a $110k target surged, many smaller traders viewed this as a profit-taking opportunity. However, historical trends noted by Santiment suggest that retail traders’ optimism often signals the possibility of market reversals, leaving larger investors to benefit.
The Role of Whales and Sharks in Bitcoin’s Movement
Santiment’s data highlights the actions of Bitcoin holders with 10 or more coins—referred to as whales and sharks—who have continued to accumulate throughout December. These larger market participants have a history of influencing price trends. They influence by strategically buying during market downturns and selling during peaks.
The report suggests that aligning strategies with these key stakeholders or adopting a contrarian approach to retail sentiment can lead to better outcomes for traders. While retail traders often react to short-term market conditions, whales and sharks take a longer-term view, capitalizing on the volatility in crypto markets.
Read also: Can VeChain (VET) Price Spike to $1 During This Bull Run?
Technical Analysis Points to Potential Corrections
Crypto Patel’s Elliott Wave analysis provides additional context to Bitcoin’s December performance.
Patel identified a Wave 3 top at $107k, followed by a correction near $93k, aligning with a key Fibonacci retracement level. He also noted that $97k serves as a critical support level. If this level holds, Bitcoin could resume its upward trajectory toward $103k and beyond.
However, a failure to maintain support at $97k might result in a dip to $85k, potentially marking the end of a Wave 4 correction. Patel’s analysis suggests this could set the stage for a new all-time high as the bull market progresses.
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