Bitcoin Price Rise Sparks Talk of Further Upside: Details

Bitcoin showed fresh strength this week after an 8% climb on Wednesday, and several market watchers say recent trading patterns hint that a short term floor may already be in place. 

Bitfinex analysts noted on Tuesday that a mix of heavy position cuts, short term holder selling and signs of fading sell pressure has created room for a period of calm and a possible rebound. Hours later, Bitcoin surged toward $94,000 before settling near $93,740 at the time of writing.

Market Conditions Shift After Sharp October Drop

Bitfinex stated that the market is now running on a leaner base of borrowed money, limiting the chance of sudden liquidation waves. On October 10, about $19 billion vanished from what many described as an overheated market. That event sparked a broader sell off that pulled Bitcoin down to a low near $82,000 on November 21.

Analysts at Bitfinex said this shift supports the idea that the remaining borrowed exposure is now contained, making sharp spillovers less likely. This has opened the door for steadier trading as the year draws to a close.

The setback in October, followed by this week’s uptick, has fueled debate over whether Bitcoin’s four year bull cycle still applies. Under older cycle models, the price peak of about $125,100 in October would have marked the top of this cycle. Recent moves have cast doubt on that pattern and encouraged traders to question past expectations.

Mixed Views on Year End Performance

Bitcoin’s December record is mixed. Since 2013, the average gain is 4.69%, according to CoinGlass. Even so, this year has not followed old seasonal trends. November usually shows Bitcoin’s strongest average return at 41.12%, but last month ended with a 17.67% slide.

Some traders think this week’s improvement could carry into next year. Analyst PlanC wrote on X that this cycle does not mirror earlier ones and that he has pointed this out for more than a year. 

Another analyst, Quinten Francois, said Bitcoin appears closer to a floor than a peak at current levels.

BitMine chair Tom Lee recently stated he believes Bitcoin still has room to regain $100,000 before the year ends.