| Get all the essential market news and expert opinions in one place with our daily newsletter. Receive a comprehensive recap of the day’s top stories directly to your inbox. Sign up here! |
(Kitco News) – The cryptocurrency market got December off to a strong start as Bitcoin (BTC) hit a fresh 2023 high of $39,000 near midday on Friday, while gold bulls rallied to push the yellow metal to a new all-time high, with February gold futures last trading at $2,091.90 an ounce, up more than 4% from last Friday’s close.
Stocks also trended higher after Federal Reserve Chair Jerome Powell warned that it would be “premature” to conclude that Fed rate hikes are over or “speculate” when cuts could begin, which led to a sharp pullback in Treasury yields and the DXY.
At the market close, the S&P, Dow, and Nasdaq finished in the green, up 0.59%, 0.82%, and 0.55%, respectively. The U.S. 10-year Treasury note fell to 4.213%, and the DXY closed the session at 103.213.
Data provided by TradingView shows that after Bitcoin surged to a daily high near $39,000 on Coinbase, it has since pulled back to $38,850, where bulls look to establish a firm base of support before making a run at $40,000.
BTC/USD Chart by TradingView
Bulls’ push of the price action led to December Bitcoin futures prices hitting a new contract high in early U.S. trading Friday, according to Kitco senior technical analyst Jim Wyckoff.
Bitcoin futures 1-day chart. Source: Kitco
“A price uptrend on the daily bar chart is in place and BTC bulls have the solid overall near-term technical advantage,” Wyckoff said. “The path of least resistance for prices remains sideways to higher.”
Markus Theilen, head of research at Matrixport, said their data suggests that traders can expect “the continuation of this bull market” and reaffirmed their projections that Bitcoin will hit “$63,140 by April 2024 and $125,000 by the end of that year.”
“The bear market of 2014 (-58%) was followed by three years of a bull market, and the bear market of 2018 (-72%) was followed by another three years of a bull market,” Thielen said. “Following the 2022 bear market (-65%), a simple cycle analysis suggests another three years of this bull market, with 2023 being the first year (+123%).”
Bitcoin performance relative to the halving cycle. Source: DeFi Research
“Historically, the years when Bitcoin mining rewards were halved were generally bullish: 2012 (+186%), 2016 (+126%), and 2020 (+297%),” he added. “As miners tended to hoard Bitcoins before each halving, prices increased by +200%, which would project Bitcoin reaching $125,000.”
“Based on our inflation model, the macro environment is expected to remain a robust tailwind for crypto,” Thielen said. “Another decline in inflation is anticipated, prompting the Federal Reserve to likely initiate interest rate cuts. Combined with geopolitical crosscurrents, this healthy dose of monetary support should push Bitcoin to new highs in 2024.”
While multiple analysts are predicting a significant runup in 2024, many, including MN Trading founder Michaël van de Poppe, have also warned about an uptick in volatility that could see a sharp 10-15% pullback in BTC price, which would present a good buying opportunity.
#Bitcoin still fighting resistance here and grinding upwards.
At some point, there will be one of those harsh corrections of 10-15% on #Bitcoin in one-go, those are opportunities.
Buy the dip until we’ll reach $45k. pic.twitter.com/OVXkCYOAAA
— Michaël van de Poppe (@CryptoMichNL) December 1, 2023
Altcoin uptrend
Altcoins followed Bitcoin’s lead higher, with only five tokens in the top 200 recording a loss of more than 2% on Friday.
Daily cryptocurrency market performance. Source: Coin360
Siacoin (SC) gained 20.25% to lead the field, followed by a 19.5% increase for Beam (BEAM), and a 13.6% gain for Joe (JOE). Theta Fuel (TFUEL) was the biggest loser, with a decline of 10.3%, while Axelar (AXL) fell 6.6%, and Oasis Network (ROSE) lost 3.5%.
The overall cryptocurrency market cap now stands at $1.45 trillion, and Bitcoin’s dominance rate is 52.2%.
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.
