Bitcoin News and Forecast for December 5, 2023
Date: 2023-12-05 Author: Dima Zakharov Categories: BLOCKCHAIN, CRYPTO PAYMENTS
Bitcoin's Recent Performance and Outlook
Over the past two weeks, the Bitcoin market has seen numerous signs of buyer fatigue. The likelihood of a correction increased as the cryptocurrency transitioned from an upward channel to consolidation.
However, the new trading week brought Bitcoin a fresh upward impulse, fueled by Asian markets. As a result, the price of Bitcoin reached $42,420, giving us reasons to believe that the upward momentum will continue. The Bitcoin forecast remains positive.
Global Market Conditions and Their Impact on Bitcoin
It's worth noting that the Bitcoin price has returned to levels last seen before the Luna (LUNA) project and its associated stablecoin, TerraUSD (UST), experienced a crash in the spring of 2022.
During the past few weeks, tokens like Luna Classic (LUNC), Terra 2.0 (LUNA), and TerraUSD (USTC), all linked to the Terra ecosystem, have surged by 80%.
In the United States, stock indices began December on an optimistic note, continuing their growth from the previous month, driven by strong reports and expectations that the Federal Reserve had concluded its rate-hiking campaign.
The rise in U.S. Treasury bond yields added pressure to stocks, making equities less attractive.
In the Russian stock market, the week started with selling pressure due to worsening external stock market conditions. However, a rebound in oil prices (Brent bounced back above $79 per barrel after dipping to $77.5 per barrel) helped mitigate the decline by evening.
Several economic reports this week will provide insights into the trajectory of interest rates and the potential for a "soft landing" - a scenario where the Federal Reserve manages to control inflation while preventing a recession.
Investors are eagerly awaiting data on U.S. service sector activity, job vacancy reports, and the November non-farm payroll report on Friday.
In addition to Monday's market downturn, concerns about the escalation of the conflict between Israel and Hamas resurfaced after an attack on three commercial ships in the southern part of the Red Sea.
Bitcoin Price Outlook in the Near Term
It is likely that the bull trend will persist for some time. The Bitcoin forecast suggests that the price will range from $40,500 to $42,500 in the short term. Bitcoin enthusiasts and investors will be closely watching these developments in the coming days. Stay tuned for more updates on the dynamic cryptocurrency market.
