As a seasoned researcher with years of experience in the dynamic world of cryptocurrencies, I find myself constantly intrigued by the rollercoaster ride that is Bitcoin (BTC). The recent surge back towards $100,000, following a flash crash, is a testament to the market’s resilience and volatility.
Following the opening bell on Wall Street on December 6th, Bitcoin (BTC) started moving closer to $100,000 once more, with the markets rebounding from a recent sudden drop, often referred to as a “flash crash.
Bitcoin leaves $92K dip in the dust
Data from CryptoMoon Markets Pro and TradingView showed 2.7% BTC price gains on the day.
After a brief calm period, market turbulence grew more pronounced, following a steep drop of $10,000 within just one hourly chart interval.
In my recent analysis, I found that even though Bitcoin has been experiencing significant fluctuations, it seems to be adhering to traditional Technical Analysis (TA) guidelines. Specifically, after a Daily Close, there’s been a retest of the peak within the primary triangular market structure I’ve identified.
“And the post-breakout retest is successful thus far.”
A related graph showed what’s known as a “Darth Maul” candle in daily timeframes, leading to a massive $900 million in losses for both long-term and short-term traders within a 24-hour period.
Reacting, fellow trader Daan Crypto Trades was unfazed.
Yesterday, approximately $4 billion in open interest was eliminated from the Bitcoin market. This represented a significant reduction, with around $1.5 billion being erased from the Ethereum market as well. However, Ethereum managed to hold up relatively better in the end.
“These kind of flushes are pretty normal in a bull market and will happen more often. It’s the only way we keep going.”
Caleb Franzen, creator of financial research resource Cubic Analytics, was no less optimistic.
“Bitcoin could have its highest daily close ever today,” he told X followers.
“That doesn’t happen during a bear market.”
Markets lock in Fed rate cut bets
The BTC price rebound was aided by cathartic United States macro data on the day.
The figures for non-agricultural jobs suggested a weakening job market, leading to heightened anticipation that the Federal Reserve might reduce interest rates in December.
According to the FedWatch Tool by CME Group, the probability of a 0.25% reduction in interest rates by the Federal Reserve during their December 18th gathering stood at approximately 89%, a significant increase from the 68% likelihood just a week prior.
In a similar vein, The Kobeissi Letter noted that the combined job figures for September and October were revised upwards by 56,000 jobs.
“The number of mixed signals in the labor market data is alarming. The labor market is weaker than it appears to be.”
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2024-12-06 19:42