Nothing new on the Bitcoin front when it comes to the price. At the moment of writing, the largest cryptocurrency in the world by market volume is trading for just over $56K. Bitcoin has slipped under that line many times in the past week, but has always managed to get back on its feet.
While Bitcoin is underperforming right now, altcoins are on the rise. This shouldn’t be a red flag according to experts. Annually, Bitcoin always posts great results in the last quarter, and experts believe it’ll be the same this December too.
The latest drops were fueled by sell-offs and the first reported Omicron COVID-19 case. That’s the reason why experts believe Bitcoin will rise again, so investors shouldn’t be scared off.
“Extreme Fear” on the Fear & Greed Index
The Bitcoin “Fear & Greed” index is currently showing extreme fear thanks to last week’s price drops. Those were most likely related to the sell-offs by scared investors. However, the index is currently on the lowest point since September that was followed by a massive price hike. Price pullbacks are limited at the moment, and technically, all stats are on the rise from oversold levels.
In short, Bitcoin is poised for a big rally in December. Even if that doesn’t happen, it’s still stable in the mid-$50,000s. Experts believe it’s in a prime position for a massive price rise soon, possibly by the start of 2022 if not before the New Year.
It’s all a classic market pattern. The price consolidated in September, there was a sudden rise in October and a bit of November, followed by a period of correction and price drops. What’s missing in this pattern are record price heights that are on the menu soon.
While Bitcoin’s price was down around 10% last month, other coins have been on a rise. Ethereum largely outperformed any other cryptocurrency and is expected to break out early next year. The high gas fees are holding it back, but they’ve become the norm now.
As for other altcoins, it’s a wait and see situation. Many have dropped prices, but overall, the smaller coins are catching up to large-cap coins bit by bit.
A Strong December Rally?
Charts on Bitcoin’s average monthly returns put Bitcoin as one of the top months. January usually provides negative returns, but overall, December has always been a strong month for Bitcoin. That’s the reason why many investors and experts believe a rally is to follow soon, and once that happens, Bitcoin should bring other coins for the ride.
It’s been a great second half of the year for the world’s top cryptocurrency. It has grown a lot in the past few years, from being an outcast in a fiat money world, to becoming a national currency in El Salvador. Most importantly, the world is changing its stance on Bitcoin and cryptos, making it one of the most valuable assets on the market that also includes gold and oil.