- Bitcoin could be building up for a bullish move as ETFs and large holders maintain positive flows.
- Market sentiment continues sliding away from greed, but sell pressure remains relatively weak.
As a seasoned crypto investor with a decade of experience under my belt, I find myself constantly keeping my eyes peeled for telltale signs that could indicate Bitcoin’s next move. The latest developments have left me cautiously optimistic, albeit with a dash of humor to keep things light.
Bitcoin [BTC] has been demonstrating a lot of sideways activity in the last few days.
Traders are facing a common dilemma about the market direction. They are unsure if a significant price drop (retracement) is imminent or if Bitcoin could surge beyond $100,000 before the end of this year.
There might be several developments by the end of December, but recent Bitcoin actions could provide clues about what may transpire in the coming days.
This week began on a downward trend for Bitcoin, as its price dropped to around $94,816 at the moment of writing. Over the last two days, there’s been a 3.44% decrease in its value.
Although there was a minor decrease, Bitcoin ETFs started the week by receiving more funds overall. On Monday alone, Bitcoin ETFs attracted approximately $353.6 million in investments.
Compared to peak days, it was somewhat lower, but still a bit above the inflows of $320 million we saw on Friday.
The Positive ETF flows were also backed by another significant observation, underscoring potential buying pressure build-up.
On the first day of December, data from IntoTheBlock showed a significant increase in large holder Bitcoin transfers. The amount grew from 102.4 BTC to 4,670 BTC. This rise followed a noticeable decrease in such transfers that had occurred on the 28th of November.
Instead, let me rephrase that for you: On the 1st of December, large holders were withdrawing approximately 560 Bitcoins. However, by the 2nd of December, this amount had more than doubled to around 1,620 Bitcoins. Remarkably, during the same period, fewer than half the number of Bitcoins flowed in compared to inflows.
Is Bitcoin demand building up for another major rally?
The Bitcoin ETF inflows and large holder inflows could signal that demand is recovering gradually. However, prevailing demand was relatively weak and may explain why it was not matched by corresponding upside.
Rather than deviating from the overall market’s pessimistic trend, Bitcoin’s price movements mirrored this decline. Additionally, the Fear & Greed Index dropped from 80 to 76 within the last 24 hours, suggesting a decrease in bullish enthusiasm.
Similarly, as we’ve seen, the open interest in Bitcoin’s derivatives market has been decreasing this week, indicating a drop in demand for Bitcoin in this particular sector.
Regardless, the Open Interest generally stayed favorable, suggesting that while the intense buying spree in November seemed to subside, investors weren’t particularly eager to offload their investments.
This implies that investors remain cautiously optimistic about bullish prospects.
Read Bitcoin’s [BTC] Price Prediction 2024–2025
Nevertheless, it does not necessarily guarantee that Bitcoin holders will remain so for longer.
A prolonged phase of modest bullish interest could foster increasing bearish assumptions, particularly as the price trend veers closer to Fear, Uncertainty, and Doubt (FUD).
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2024-12-04 09:15