Bitcoin is more likely to surge in December than to fall, says K33

Source: PortaldoBitcoin Original Title: Bitcoin is more likely to surge in December than fall, says K33 Original Link: After two months of drama for Bitcoin and the cryptocurrency market, December is expected to mark a major turning point for the world’s largest digital currency. This is the assessment of analyst Vetle Lunde from K33 Research, who points out that after the biggest correction since the last bear market, there are more signs of a BTC recovery than another collapse.

K33 sees a market that is overreacting to distant threats while ignoring signs of short-term strength. “The possibility of a significant rally is much more plausible than a repeat of an 80% drop,” the company wrote in its December outlook.

The team of analysts led by Lunde points to several factors for their assessment. Firstly, Bitcoin is trading near strong historical support levels, around $70,000 to $80,000, while broader positioning in futures contracts remains cautious, not overheated. According to them, perpetual markets show low leverage and large liquidations have not materialized despite the pressure on prices.

And what about the threats to Bitcoin?

K33 also commented on some fears that have been discussed in the market, such as the threat of quantum computing, Bitcoin sell-offs, or Tether instability. For the analysts, these factors may seem dramatic, but are unlikely to materialize soon. The company notes that each of these threats is years away from representing a real risk and should not be driving current price movements.

Instead, the company argues that the focus should be on what is coming in the short term. With favorable political changes on the horizon, including access to cryptocurrencies through retirement plans in the US, and a pro-crypto shift at the Federal Reserve, K33 sees structural upside potential forming.

According to them, Bitcoin’s current valuation reflects fear more than fundamentals. Because of this, the analysts point out that the market remains cautious, but that December could offer an opportunity for bold positioning in the face of upside chances.