How to Trade Bitcoin’s Big Moves: 4 Powerful Tips for December
Learn how to trade Bitcoin’s big December moves with smart risk control and four key BTC strategies.
Prop Trader Edge
December 02, 2025
How to Trade Bitcoin’s Big Moves: 4 Powerful Tips for December
Bitcoin is one of the most popular and heavily traded assets in the world, attracting millions of traders every single day. Why? Because nothing moves like Bitcoin. It can climb thousands of points in a matter of hours, and it can erase just as much just as quickly. For traders chasing opportunity and volatility, Bitcoin can be very attractive but for traders without a plan or proper risk control, it is a nightmare.
We saw that volatility on Monday, December 1, 2025, when Bitcoin dropped over 6 percent in a single day, marking its largest one-day decline since March 2020. The move was not caused by a single headline. It was triggered by more than 700 million dollars in forced liquidations, a wave of risk aversion across global markets, and the reality that Bitcoin is still a highly speculative asset that reacts violently to shifts in sentiment.
Stocks were down, the yen surged, gold rallied, the dollar weakened, a classic risk off cocktail. In that environment, Bitcoin did not stand a chance. And once the liquidations started cascading, the drop accelerated.
This is exactly why Bitcoin is so exciting and also why so many traders get crushed by it.
If you want to trade Bitcoin intelligently, especially during what could be a very volatile December, here are the four most powerful tips you need to know.
1. Bitcoin is a Risk Asset that moves with Stocks
Look at Bitcoin on the weekly or 4-hour charts and compare it to the S&P 500 or Nasdaq. The correlation is undeniable. Bitcoin performs best when stocks rise because it behaves like a high beta risk asset.
When investors are optimistic, speculative assets soar. When fear rises, these same assets fall, and Bitcoin tends to fall faster.
It is important to remember:
Bear markets hurt Bitcoin more than bull markets help it.
So if you expect a deeper stock market correction in December, you need to factor that into your crypto trades. Bitcoin does not move in isolation. It moves with global risk sentiment.
2. Watch the U.S. Dollar’s Negative Correlation with BTC
If you overlay Bitcoin candles with the U.S. Dollar Index on a weekly chart like we’ve done below, the relationship jumps out:
When the dollar rises, Bitcoin usually falls. This usually happens with a lag where the dollar tends to be the leading indicator for BTC.
The reason is because Bitcoin is priced in dollars on every major crypto platform, any sharp rally in the USD, whether triggered by the Fed, stronger U.S. data, or global risk aversion, puts downward pressure on Bitcoin.
If you are trading BTC, you are also trading:
U.S. interest rate expectations
Federal Reserve policy
U.S. economic momentum
Understanding the dollar’s influence is non-negotiable.
3. Bitcoin Loves Round Numbers. Trade the 5000 and 10000 Levels
Bitcoin consistently gravitates toward major psychological round numbers. Historically, BTC loves to test, break, and run toward every 5000 or 10000 point level.
Break 80000 and it often runs toward 85000.
Break 90000 and it often pushes toward 85000.
These zones act like magnets and the strategy is simple:
Trade the breakout in the direction of the move
Target the next 5000 point level
Use swing highs and lows as additional targets
This approach works because Bitcoin is a very trending instrument, and its respect for round numbers is remarkably consistent.
4. Big Days Usually Have Continuation
Another key characteristic of Bitcoin is that
When Bitcoin moves seven percent or more in a day, follow through is highly likely.
Because BTC is momentum driven, large range days often lead to another 1000 or more points of continuation. Volatility clusters, especially when Bitcoin is in a trending environment. Once a big drop starts, it rarely stops immediately.
The Best Way to Trade Bitcoin
Here is the truth:
Bitcoin’s wild swings can destroy a personal account, especially if you are trading with leverage through an exchange or wallet. One wrong move during a liquidation cascade can wipe out months or years of savings.
That is why more and more traders are now choosing to trade Bitcoin through prop firms because:
Your maximum risk is the challenge fee, not your entire balance.
You get funded. You trade firm capital. You keep up to 90% of the profits.
And you avoid the catastrophic risk of a crypto meltdown blowing up your own money.
It is simply a smarter way to trade a highly volatile asset like BTC.
Best Prop Firms for Trading Bitcoin. Our Top Picks
Here are the strongest options in the industry for Bitcoin prop trading:
Breakout Prop (Kraken Backed)
Uses your Kraken login
Built specifically for crypto traders
You can get funded in one trade
Great for intraday and swing crypto traders
ThinkCapital
#1 CFD and Forex prop firm for US traders and one of the best for crypto
Powered by ThinkMarkets
Free trial accounts
Ideal for Bitcoin and altcoin traders who want institutional grade conditions
Axi Select
Best for traders who want a long term professional relationship and real scaling potential
Powered by the award winning broker Axi
Eightcap Day Trader Challenges
Broker powered prop challenges by Eightcap
Groundbreaking ultra fast 1-hour, 4-hour, and 8-hour challenges
Designed for day traders who want speed, instant evaluation, and full transparency
