Bitcoin grinds higher
Bitcoin (BTC) has started December under pressure, reflecting renewed risk-off sentiment and broad market weakness.
On 1 December, the cryptocurrency plunged to as low as roughly $84,000.00, a steep drop that analysts attribute to a wave of liquidations across crypto markets, thinning liquidity, and falling risk appetite among investors.
In the days following that sell-off, Bitcoin rebounded moderately, recovering past $94,000.00, before slipping back towards the $88,000.00 region where it found support.
Some market watchers view this stabilisation as evidence that near-term fear may be easing and that interest in high-quality crypto assets could be resurfacing.
Nevertheless, the outlook remains fragile and conflicted. The early December sell-off wiped out much of Bitcoin’s earlier gains: what had been a rally peaking near record highs has given way to renewed uncertainty.
With institutional demand softening in November and spot exchange-traded fund (ETF) outflows mounting – including record withdrawals from major funds – liquidity stress and investor re-evaluation of risk are weighing heavily on BTC’s near-term prospects.
Beyond price moves, recent institutional dynamics have added nuance to the market picture.
One of the largest corporate holders of Bitcoin, Strategy, which amassed hundreds of thousands of BTC in prior years, has now indicated it may liquidate part of its holdings.
The company’s shift away from its long-time “buy and hold” posture has raised concern among market participants who wonder whether more heavy sellers could emerge if Bitcoin’s value does not recover.
At the same time, some argue that the ongoing dip in BTC presents a potential entry point for long-term investors, provided macroeconomic conditions – particularly interest-rate expectations and liquidity in traditional markets – do not deteriorate further.
In sum, the past few weeks have seen Bitcoin swing between sharp declines and tentative rebounds, reflecting a crypto market deeply influenced by macroeconomic uncertainty, shifting institutional flows, and evolving investor sentiment.
Whether the current bounce evolves into a sustained recovery or remains a temporary reprieve will depend heavily on developments in global markets, institutional behaviour, and broader confidence in risk assets.
Bitcoin bullish case:
Bitcoin is gradually heading towards its early December high at $94,213.50. A daily chart close above this level on a daily chart closing basis may lead to the psychological $100,000 region being revisited.
For the bulls to be back in control, however, the 11 November high at $107,461.75 would need to be overcome.
Bitcoin bearish case:
While the 3 December high at $94,213.50 isn’t overcome on a daily chart closing basis, downside pressure may once more rear its head with the $80,000.00 zone remaining in sight.
For this to be the case, a resumption of the bear trend and fall through Sunday’s low at $87,783.05 would need to ensue.
Short-term outlook: neutral while below $94,213.50
Medium-term outlook: neutral while below the 3 December high at $94,213.50 and above its $80,619.71 late November low