30s Summary

Bitcoin price dipped below $105,000 just prior to a US Federal Reserve interest rate announcement. Crypto experts predict those holding Bitcoin could see serious future gains, with a 37% increase already seen in November 2024. Analyst Percival noted profit-taking fell dramatically in the last three weeks, from $10 billion to $3 billion, suggesting long-term holders have cashed in most profits and are ready for further Bitcoin price rises. However, Coinbase premiums have also fell, indicating that Bitcoin’s rally is not being driven by US investors.

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Hey there! Let’s talk Bitcoin. After reaching an all-time high of $108,365 on Dec. 17, Bitcoin’s price dipped a bit, falling under $105,000. This happened just before the U.S Federal Reserves were set to announce interest rates on Dec. 18. There’s quite a bit of buzz suggesting they might cut it by 25 basis points.

Despite the roller coaster, it’s not all doom and gloom. A crypto expert sees good times ahead. People who’ve held on to their Bitcoin for a while now are poised to make some serious gains in the future.

Turns out Bitcoin had an amazing comeback in November 2024, going up by 37%. Cue everyone scrambling to take their profits! This reportedly resulted in selling pressure bumping up to 366,000 BTC per month or around $10 billion.

But don’t worry, things have calmed down since then. According to Percival, a verified Bitcoin analyst, profit-taking has taken a significant dip in the last three weeks.

This change is pretty evident in the chart. Profits taken by long-term holders fell from $10 billion on Nov. 25 to $3 billion on Dec. 14, even though Bitcoin prices enjoyed a 12% boost during this period. Basically, those holding Bitcoin for the long run have already cashed in most of their profits and they’re ready for Bitcoin prices to rise some more.

Also, according to Percival, the market has struck a balance between buyers and sellers. This balance suggests the markets are chill and neither overbought or oversold, setting the stage for Bitcoin’s upward journey.

Even with all these positive developments, it’s worth noting that the Coinbase premium has been on a decline since December started. According to Yonsei Dent, a crypto trader, the premium’s been falling while Bitcoin prices have been rising. This points to the fact that Bitcoin’s latest rally isn’t being fueled by U.S investors.

In simple words, it means there might be some weakness in Bitcoin’s medium-term upward movement. So, it’s important to be a little cautious and keep an eye on this.

Despite these uncertain times, Daan Crypto, another independent trader, has observed that Bitcoin patterns are following last year’s trajectory – it might remain a bit shaky right up to the last two weeks of 2024 before making a real headway in Q1 of 2025.

Note: Please remember, this information is all about keeping you informed and should never be treated as financial advice. Happy trading!