As a seasoned crypto investor with a knack for spotting trends and navigating market volatility, I find myself both exhilarated and slightly frustrated by the recent surge of Bitcoin (BTC) nearing $100,000. On one hand, it’s an exciting time to be in the game, witnessing such monumental price movements. However, my personal experience tells me that these rapid increases often precede a period of consolidation or correction.
Bitcoin (BTC) neared $100,000 on Dec. 21 after a “monster” BTC price bounce delivered snap upside.
BTC price starts weekend with sudden rebound
Information sourced from CryptoMoon Markets Pro and TradingView showed a rapid increase of approximately $7,000 for the BTC/USD pair within a 24-hour timeframe.
Following the sale of highly-leveraged long positions that dropped prices back to around $92,000 in December, there was finally a respite as the weekend started.
On Bitstamp, the price soared up to $99,500, suggesting that even without significant institutional trading, the bulls were able to aggressively regain the six-figure mark.
The rebound came as buyers returned to largest US exchange Coinbase, which had previously spawned sell-side pressure.
According to popular trader Exitpump’s recent post on X, Coinbase has been making significant purchases since the market lows, as compared to Binance.
Trading partner Superbro observed that the 50-day Simple Moving Average (SMA) functioned effectively as a solid floor for Bitcoin’s price against the US Dollar.
On an hourly basis, he looked for a possible breakout signal shaped like an inverted head and shoulder structure – a well-known pattern that can indicate both short-term and long-term price bottoms.
In continuation, Doctor Magic explained the breakdown signal that emerged from the Relative Strength Index (RSI) of Bitcoin as a potential scam.
In simpler terms, the Relative Strength Index (RSI) for Bitcoin, as previously observed, might have been intentionally suppressed prior to prolonged Bitcoin price increases in the past.
He explained to his audience, “I’ve been consistently sharing insights on the RSI scam analysis for some time now, and there’s a significant explanation behind my fascination with it. This pattern seems to have occurred in every major market surge, right up until the initial peak.” To support his points, he included a chart highlighting the strong correlation between the signal and price movements.
At the moment of writing, the Daily Relative Strength Index (RSI) was 52, maintaining the significant middle point of 50. According to CryptoMoon’s report, during Bitcoin’s bullish market phases, RSI often stays above the “overbought” level of 70 for a prolonged duration.
Too little, too late for Bitcoin ETFs
Investors on U.S. Bitcoin spot ETFs found the Bitcoin’s approach toward $100,000 a somewhat mixed emotion.
On December 20th, Exchange-Traded Funds (ETFs) experienced a collective withdrawal of approximately $300 million, according to figures provided by Farside Investors based in the United Kingdom.
In a significant development, the iShares Bitcoin Trust (IBIT) experienced its greatest outflow of funds ever, totaling approximately $72.7 million.
Meanwhile, on December 19th, the combined total outflow for the ETF products reached an all-time high of $671 million.
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2024-12-21 12:27