Crypto Market Overbought? Analysts Predict Pullback Before 2024 Rally

Crypto analysts predict a potential pullback for the market in December before the next uptrend begins. A recent analysis of November’s top 100 digital assets by performance highlighted an overheated funding rate.

Stellar (XLM) led the market with a 478% gain over the last 30 days. Virtual Protocol (VIRTUAL) ranked second with a 336% profit, while XRP and Algorand (ALGO) tied for third, each gaining 268% in November.

Bitcoin Breaks Records, Nears $100K

Donald Trump’s U.S. presidential victory fueled the November rally, breaking months of upside speculation. Bitcoin surged 48% since November 5, hitting a new all-time high of $99,800, according to TradingView. BTC surpassed the pre-halving high of $73,000, leading the broader market uptrend.

In the meantime, the recent crypto market surge has triggered varying dynamics, considering the macroeconomic and sociopolitical factors behind the move. Additionally, Bitcoin’s proximity to the $100,000 psychological barrier introduces complexities, with traders weighing profit-taking against the possibility of a continued bull run.

Technical indicators suggest the crypto market is highly overbought and will embark on a pullback soon, with long-term investors cashing in on some profit. However, sociopolitical developments in the U.S. puts digital asset investors on their toes.

Trump’s pro-crypto campaign promises, combined with his recent appointments, are driving optimism. The incoming administration’s actions after taking over power will go a long way in the crypto market’s long-term trajectory. However, many technical analysts think the market is due for a pullback, and that would happen before the end of the year to mark a consolidation ahead of the next rally phase.