Bitcoin Outlook: Why December Could Mark a Reversal — Coinbase Explains
November was a difficult month for crypto, but Coinbase Institutional argues that conditions for a trend reversal are forming. While BTC remains more than three standard deviations below its 90-day average — levels last seen after the Terra and FTX collapses — analysts David Duong and Colin Basco believe December may serve as an inflection point.
Key drivers include the December 10 Fed meeting, where markets assign high odds to a rate cut, and Bitcoin’s extreme underperformance vs. the S&P 500. Historically, such divergences often precede strong upside reversals.
Still, risks remain: outflows from spot ETFs, shrinking USDT supply, and multiple broken support zones. Coinbase warns against blindly “buying the dip,” recommending a trend-based strategy where positions are added only when BTC trades back above the 50-day SMA.
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