Bitcoin price rally in December hits $108k amid cooling futures market
Bitcoin achieves record high of $108,200 in December rally, faces support test
Bitcoin price has seen a 12% rise this December, reaching a fresh all-time high of $108,200 on December 17. However, the rally was followed by a 4% pullback into the December 18 European session, testing critical support at $103,700.
Spot market activity appears to be a major driver behind Bitcoin’s recent price increases, while the futures market is showing signs of cooling, potentially setting the stage for a more sustainable growth trajectory.
BTC price dynamics (November-December 2024). Source: TradingView
Bitcoin’s bull cycle, which began in early 2023, initially saw futures market activity dominate, as speculative trading pushed prices upward. This trend shifted in March when trading activity across both futures and spot markets slowed. However, since October, a resurgence in trading volumes has reignited Bitcoin’s rally. Notably, the recent phase has been characterized by rising demand in the spot market where investors purchase Bitcoin for immediate ownership, a shift in focus to long-term accumulation.
Bitcoin price forecast: RSI signals momentum shift as 100 EMA offers support
The pullback following Bitcoin’s latest all-time high brings the $103,700 level, previously the December 8 peak, into focus as a key support zone. Technical indicators show that the 100 EMA on the 4-hour chart has crossed above $100,000, reinforcing this level as a psychological and technical support. If $103,700 fails to hold, the next significant support lies at $100,000, bolstered by the 100 EMA. From a momentum perspective, the RSI, which was overbought during the rally to $108,200, has now dropped below 50, indicating a cooling phase in bullish momentum. Meanwhile, the 30-day EMA of Bitcoin’s funding rate suggests the market is not overly leveraged, reducing the likelihood of sudden liquidations.
Looking ahead, futures markets are expected to undergo cycles of heightened activity and liquidation. These fluctuations, combined with increasing spot market demand, could support Bitcoin’s long-term price growth. However, maintaining support above $103,700 will be critical for preserving short-term bullish momentum.
Bitcoin hit a fresh all-time high at $107,500 on December 16, surpassing last week’s record of $103,700. Institutional players and Bitcoin miners continue to accumulate significant holdings.
