The cryptocurrency market has kicked off December with a drastic momentum shift, characterized by a rare Bitcoin signal that historically precedes massive parabolic moves, coinciding with a Federal Reserve liquidity injection of 13.5 billion dollars. According to recent analyses from Altcoin Vector and Gert van Lagen, this cluster of technical and macroeconomic catalysts suggests the potential start of a full market reversal following a V-shaped recovery.
Hard data confirms that Bitcoin’s monthly Bollinger Band width has dipped below 100, an extremely uncommon technical event in the last decade. Historically, every time this indicator triggers, the leading digital asset has followed with a direct and explosive bullish leg, provided it manages to reclaim and stabilize above the critical resistance of 93,500 dollars. Simultaneously, on December 1, the Federal Reserve executed the second-largest overnight repo operation since the pandemic, injecting 13.5 billion dollars into the financial system, which many interpret as a sign of easing liquidity pressure.
This scenario is reinforced by a significant shift in institutional stance. Vanguard, which manages 11 trillion dollars, has reversed its anti-crypto policy, now allowing Bitcoin and Ethereum ETF trading for its more than 50 million clients. Additionally, Bank of America has authorized its advisors to recommend an allocation of between 1% and 4% in crypto assets starting in January 2026. The combination of fresh liquidity and massive institutional adoption creates a favorable environment for capital to flow back into risk assets, validating the V-shaped recovery observed in major altcoins.
Are we facing the imminent start of a new parabolic expansion phase?
The implications for the market are profound if the resistance breakout is confirmed. The Fed’s liquidity injection acts as essential fuel for short-term risk appetite, which could prevent further significant drops ahead of the December rate decision. If Bitcoin manages to turn 93,500 dollars into support, the rare Bitcoin signal could trigger a sustained bull run, dragging the rest of the sector with it. On the other hand, analysts like Brett warn that this liquidity could also be a warning light regarding internal tensions in the banking system, which demands caution.
Finally, the market finds itself at a decisive inflection point where technicals and macroeconomics converge. With Tether minting an additional 1 billion dollars and expectations of Ethereum upgrades, the probability of a bullish continuation seems to strengthen day by day. Traders will need to watch the weekly close closely, as confirming this technical structure could mean the end of the correction and the start of a year-end rally driven by liquidity and institutional backing.
