Market Eyes Ethereum as Bitcoin Consolidation Extends into December: QCP

Cryptocurrency markets experienced a notable pullback with over $100 million in Bitcoin and Ethereum positions liquidated across exchanges, though both assets maintain positions above critical support levels of $95,000 and $3,200, respectively, according to QCP Broadcast’s latest market analysis.

QCP expects Ethereum to gain attention

Backend volatility remains elevated despite the weekend retracement, with market participants expecting Bitcoin to trade sideways through December as attention shifts toward Ethereum.

ETH risk reversals show a strong bias toward front-end calls, while Bitcoin call options see increased interest only from December 27, 2024, forward, reflecting expectations around Trump’s pro-crypto policies taking effect in late 2025.

The anticipated rotation from Bitcoin to Ethereum and alternative cryptocurrencies appears to be materializing, as evidenced by Bitcoin’s dominance declining from 62% to 59% over the past week. Despite strong spot ETF inflows and positive IBIT options sentiment, Bitcoin faces resistance at the psychological $100,000 level.

MicroStrategy’s potential additional Bitcoin purchases have caught market attention, with Michael Saylor hinting at expanding their holdings. Given the company’s role in Bitcoin’s post-election breakout, traders are watching closely to see if new purchases could push BTC beyond $100,000.

While Bitcoin contends with significant selling pressure at $100,000, the market shows increasing interest in Ethereum’s potential. However, QCP suggests that a successful breach of $100,000 by Bitcoin, potentially catalyzed by MicroStrategy’s purchases, could temporarily redirect attention back to BTC, delaying the anticipated alt-season.

The current market structure suggests a delicate balance between Bitcoin’s consolidation phase and growing interest in alternative cryptocurrencies, with institutional buying pressure potentially determining near-term market direction.