Bitcoin price still faces a 10% pullback risk in December, led by a convincing rising wedge pattern formation.
Bitcoin’s price has jumped 2.65% in the last 24 hours to reach around $102,645 on Dec. 14. One of the factors for the gain is MicroStrategy’s inclusion into the Nasdaq 100 Index, an index of 100 top non-financial companies on the Nasdaq.
Moreover, the positive inflow streak across most US-based spot Bitcoin exchange-traded funds (ETF) continues alongside technical factors that are also boosting BTC’s price today.
Bitcoin becomes passive Wall Street asset thanks to MicroStrategy
Bitcoin’s gains followed Nasdaq Global Indexes’ decision to add MicroStrategy to their Nasdaq 100 Index.
The move follows MicroStrategy’s boom in 2024, with its share value soaring 500% year-to-date, driven by its founder Michael Saylor’s unconventional approach and outspoken advocacy for Bitcoin.
Enterprise analytics software firm MicroStrategy has gained prominence and increased its valuation since it began accumulating Bitcoin in 2020. As of December 2024, it had more than $40 billion worth of the apex cryptocurrency.
Notably, at the time of the first Bitcoin acquisition, MicroStrategy’s market cap was $1.31 billion, a figure that has since increased to nearly $100 billion in December. This growth placed it ahead of about half the Nasdaq 100’s members, as shown in the chart above, which meets a key requirement for inclusion.
Theoretically, a bullish Nasdaq 100 index could now have a similar upside impact on Bitcoin, according to market analyst Alex Krüger.
“MicroStrategy included in the Nasdaq. So people have to buy MSTR because its in the index which means Saylor can sell more shares and converts to buy more bitcoin which pushes bitcoin up and then MSTR goes up which means you have to buy more shares to match the index, rinse and repeat,” he explains, adding:
“Bitcoin to infinity.”
Record Bitcoin ETF flows drive BTC prices higher
BTC’s gains today follow about two weeks of continuous inflows into US-based spot Bitcoin ETFs.
Between Nov. 27 and Dec. 13, the cumulative flow into these funds jumped from $30.43 billion to a record high of $35.60 billion, according to data tracked by Farside Investors.
Between Dec. 2 and Dec. 8, MicroStrategy acquired 21,550 BTC at an average price of $98,783 per Bitcoin. Similarly, on Dec. 10, Bitcoin miner MARA Holdings disclosed purchasing 11,744 BTC. These significant acquisitions reflect growing institutional interest in Bitcoin as a strategic asset.
Adding to the bullish sentiment, investors are closely monitoring a proposal by Senator Cynthia Lummis to establish a US strategic Bitcoin reserve, targeting the accumulation of up to 1 million BTC over time. States like Texas are also exploring similar initiatives.
Meanwhile, a Texas lawmaker recently introduced legislation to hold Bitcoin as a reserve asset for at least five years, emphasizing that “no taxpayer funds would be spent on buying Bitcoin.”
These developments highlight a growing trend of Bitcoin adoption at both institutional and governmental levels, further driving market optimism.
Bitcoin may slip below $100,000 again
Bitcoin’s price rise today is also part of a consolidation trend occurring inside its prevailing rising wedge pattern.
A rising wedge forms when the price trades higher inside a range defined by two ascending, converging trendlines. It resolves when the price breaks below the lower trendline and falls by as much as the wedge’s maximum height.
As of Dec. 14, BTC’s price was testing the wedge’s upper trendline at around $101,900 as resistance, eyeing a pullback toward the lower trendline at around $97,500. This level aligns with the 20-day exponential moving average (20-day EMA; the purple wave).
The wedge’s downside target for December appears to be closer to BTC’s 50-day EMA (the red wave) at around $89,500.
Conversely, a decisive break above the wedge’s upper trendline will likely invalidate the bearish reversal outlook. Such a scenario would mirror Bitcoin’s behavior during the rising wedge pattern observed between August and November.
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