In November, Bitcoin surged by approximately 40%, marking just the first month of “insane” returns in the current cycle, according to Charles Edwards, founder of Capriole Fund.
Every cycle we get 4-7 months of insane Bitcoin price discovery returns. We have just had our 1st in November! The next months will have insane long opportunities. The normie mind is not ready.
— Charles Edwards (@caprioleio) December 2, 2024
Typically, the number of months of rapid growth in a bull market ranges from four to seven, suggesting “crazy opportunities” ahead, the expert added.
Trader Daan Crypto Trades shares a similar view, believing Bitcoin has entered the price discovery phase for the current cycle.
#Bitcoin Has begun its price discovery phase for this cycle.
In 2017, it went up +1600% from that point.
In 2021, it went up +245%.Even if we’d do half of the 2021 move, that would still put price at ~$150K.
What is your estimate? pic.twitter.com/EgvcRlrrTS
— Daan Crypto Trades (@DaanCrypto) December 1, 2024
“In 2017, the figure rose by +1600%. In 2021, it was +245%. Even if we achieve half of the last plan, the price would still be around $150,000,” the analyst stated.
Bitcoin balances on major exchanges are rapidly declining to historic lows, and long-term holders of the leading cryptocurrency are not rushing to market, exacerbating the supply shortage, noted Marcus Thielen, founder and CEO of 10x Research.
Panic Mode: #Bitcoin Supply is Drying Up – Are You Too Late? Massive Flows are hitting the market…
?1-10) The Bitcoin balance on cryptocurrency exchanges is rapidly dwindling. Unlike late summer, when a sudden large inflow temporarily replenished exchange balances, this time,… pic.twitter.com/PoNJnCCeTa
— 10x Research (@10x_Research) December 2, 2024
This sharply contrasts with the situation at the end of summer, when a sudden large inflow replenished trading platform reserves. This is not happening now, the analyst emphasized.
According to on-chain data, only three platforms—Bitfinex, Binance, and Coinbase—have sufficient balances to meet demand, Thielen added. If one considers the liquidity inflow into ETFs, the first has enough digital gold reserves for about a year, the expert pointed out.
“Historically, Bitcoin has grown by an average of 10% in December, with record figures in 2010, 2011, and 2020,” Thielen said in an interview with Cointelegraph.
This is especially relevant for halving years—the average figure is +28%, the analyst highlighted. The block reward reduction occurred in April.
At the time of writing, the leading cryptocurrency is trading around $96,200. Prices have recovered from a drop to ~$91,000 at the end of November but have not returned to the all-time high.
John Glover, Chief Investment Officer at Ledn, suggested that a deeper correction in Bitcoin is still possible. An alternative scenario is the continuation of the upward momentum to $125,000.
“There is no real threat of a sharp sell-off unless we break the March high of ~$74,000. Therefore, I expect the market to continue building long positions on any dips,” he concluded.
ARK Invest anticipates prices reaching record levels of $104,000-$124,000 before the end of the year.
Analysts at CryptoQuant foresee the continuation of the bull phase with a target Bitcoin price of $146,000.