As a seasoned analyst with over a decade of experience in the financial markets, I’ve seen my fair share of market volatility and bull runs. However, what’s happening with Bitcoin right now is truly unprecedented. The way it’s breaking records week after week, it’s like watching a rocket soar into the stratosphere.
On December 16, the opening of Wall Street markets saw Bitcoin (BTC) reaching new record highs. The traditional US financial market week kicked off with an uplift.
BTC price demands new record high
Information gathered from CryptoMoon Markets Pro and TradingView revealed an impressive surge in Bitcoin’s price by approximately $2,000 within the space of a single hourly period.
Rather than showing negativity during past weekly openings, markets showed optimism upon learning that MicroStrategy, a business intelligence company, further increased its Bitcoin holdings. This recent investment amounted to $1.5 billion in Bitcoin, boosting the firm’s total holdings to 439,000 BTC, which is currently valued at approximately $46.38 billion.
Discussing their observations, investment firm QCP Capital posits that MicroStrategy’s recent addition to the Nasdaq 100 index might serve as a foundation for potential Bitcoin fundraising endeavors in the future.
Posting on their Telegram channel, they suggested that this addition might lead to passive investments flowing into MicroStrategy stocks, thereby providing an indirect means for the company to effortlessly acquire more Bitcoin by having easy access to funds.
Over the short term, the volatile price movements of Bitcoin persisted after setting a new record for its weekly closing value. By examining trading activity on various exchanges, well-known trader Skew observed that potential buyers are still active near the current prices, which are very close to all-time highs.
In a recent post on X, he stated that the starting point for spot demand is at $98K and below, however, there’s a strong possibility that the bid liquidity will increase as the market gains momentum and power.
Skew pointed out that a liquidity cluster is developing around the range of $108,000 to $111,000, which might shape the market’s short-term focal point in the near future.
He mentioned that a total of $600 million worth of positions taken in anticipation of prices dropping were closed, as the price on Binance derivatives surpassed $104,000 each.
“For continuation from here it’s important to see spot buying & momentum above $104K.”
Looking at a broader perspective, the analytics account Bitcoindata21 noticed potential signs from ‘whales’ on the exchange Kraken, suggesting a possible starting point for a prolonged price consolidation phase.
The area in question focused around $150,000.
Kraken whales (large-scale traders) are hinting at potential Bitcoin price deceleration in the upcoming months by placing sell orders. These orders, if executed, may resemble the ones responsible for halting the price surge earlier in the year, according to their recent announcement to their followers.
“The more stacked the asks become in that range, the more chance of slowing down momentum.”
Bitcoin breaks away from major altcoins
Moving forward, Roman, my trading companion, proposed an interesting idea: When Bitcoin (BTC) reaches a significant milestone against the U.S. dollar, other altcoins might gain more lasting attention.
It’s expected that money may begin shifting towards alternative cryptocurrencies (altcoins) when Bitcoin surpasses the price point between 120,000 to 130,000 dollars.
“The same logic as when $BTC broke 40k in 2020 $alt season started.”
In my analysis, at the point of composition, Bitcoin stood out as the leader among the top ten cryptocurrencies by market capitalization, demonstrating substantial growth on a daily basis. Contrastingly, large-cap altcoins exhibited a more modest decline when compared to the US dollar.
Ether (ETH) was the only exception, being up 1.2% at around $3,950.
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2024-12-16 19:09