Bitcoin may be in for “insane long opportunities” over the coming months, as traders say BTC has now entered a price discovery phase.
“Bitcoin has begun its price discovery phase for this cycle,” said trader and analyst Daan Crypto Trades on X on Dec. 2, noting that the asset has traded above its previous all-time high for almost a month.
He cited previous gains in the past two cycles amid the price discovery stage; Bitcoin (BTC) went up 1,600% during the 2017 bull market and 245% during the 2021 bull market.
“Even if we’d do half of the 2021 move, that would still put the price at around $150K,” he said.
Price discovery is a process that determines an asset’s fair market price through the interaction of buyers and sellers, and a new phase begins once it trades above all-time highs.
Capriole Fund founder Charles Edwards said: “Every cycle we get 4-7 months of insane Bitcoin price discovery returns,” adding that the first month occurred in November, which saw the asset surge 40% and break monthly candle records.
“The next months will have insane long opportunities,” he predicted. December has also been a bullish month for BTC historically.
BTC/USD 1M. Source: Daan Crypto Trades
Bitcoin reclaimed $98,000 during early trading on Dec. 2, but has retreated below $97,000 since, trading just 3.3% below its Nov. 22 all-time high of $99,645 at the time of writing. Analysts tell Cointelegraph there could be more to come in December.
“Historically, Bitcoin has averaged a +10% increase in December, with blockbuster performances in 2010, 2011, and 2020,” 10x Research founder and CEO Markus Thielen told Cointelegraph.
He added that this was especially true during halving years when “the December returns were +6% in 2012, +31% in 2016, and +47% in 2020 — averaging a remarkable +28%.”
“All three halving years posted positive returns in December,” he said.
Related: Bitcoin‘s $93K dip could be ‘last flush’ before the rush: Analysts
Meanwhile, chief investment officer at crypto financial services firm Ledn, John Glover, told Cointelegraph that a larger correction could still be possible. However, it is also possible that momentum could continue to the $125,000 area, he said, before adding:
“There’s no real threat of a drastic sell-off unless we breach the March 2024 high at ~$74k, so I expect the market to continue adding to longs on any dips.”
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