As a seasoned cryptocurrency investor and trader with years of experience under my belt, I must say that the current state of the Bitcoin market presents a fascinating opportunity for those who are willing to dive in. The recent volatility we’ve seen, stemming from political turmoil in South Korea, is not uncommon in this space, but it does serve as a reminder that we should always keep our eyes open and be prepared for unexpected events.
Bitcoin (BTC) bounced from weekly lows on Dec. 4 as analysis demanded a reclaim of the weekly open.
BTC price analysis flips cautiously bullish
According to data gathered from both CryptoMoon Markets Pro and TradingView, it appears that the Bitcoin-to-U.S. dollar exchange rate (BTC/USD) has almost reached $97,000 today, representing a 1% increase in value compared to yesterday.
Initially, the market turbulence observed on Wall Street was triggered by political unrest in South Korea, causing a temporary dip in Bitcoin price to under $94,000.
The “Kimchi Premium” – the gap between Bitcoin’s price on South Korean exchanges compared to other platforms – reached an all-time low and then rebounded. Additionally, the Bitcoin/Won trading pair on the South Korean cryptocurrency exchange Bithumb experienced a sudden drop, approximately reaching $78,000.
Now, key levels include Bitcoin’s 21-day simple moving average (SMA), currently at $94,560.
Skew, a well-known trader, stated in his recent post on the 4-hour chart that the prices dipped into New York’s opening before reversing. He prefers to observe the price climbing above $95K following this dip.
Skew added that reclaiming the weekly open at around $97,270 would be “very key for higher.”
Examining daily timeframes, popular trader and analyst Rekt Capital was nonetheless hopeful.
He informed his X followers that Bitcoin is repeatedly testing previous highs as a source of support, resulting in progressively longer declines. This action suggests it’s absorbing more and more liquidity at decreasing costs, all while maintaining its overall upward trajectory.
“As long as this continues, BTC should be able to reclaim the ~$96400 support.”
CryptNuevo, another trader, cautions that a significant drop in the weekly charts could potentially lead to a further test around $90,000 or even lower price levels.
“50% of the wick in the 1W chart has been filled,” he noted in part of his latest X post.
Bitcoin retail comeback in numbers
Over the past month, I’ve noticed a significant trend among Bitcoin investors cashing out their gains. However, this mass profit-taking seems to have sparked a surge in retail interest, according to recent findings.
According to data from CryptoQuant, a platform that analyzes onchain activity, there’s been a 30-day increase of over 30% in buying volume among smaller cryptocurrency investors.
As a crypto investor, I’ve come to believe that the persistent high demand we’re seeing might be due, in part, to the increased retail interest in the market. This is an observation I made after reading one of CryptoQuant’s Quicktake blog posts by contributor Darkfost. Even as some long-term holders decide to cash out their gains (take profits), the overall demand seems to remain robust.
“Historically, increased retail participation has often signaled a potential local top. However, it also highlights growing market engagement, which, when combined with institutional interest, can create sustained positive momentum.”
The post saw $100,000 still on the radar as a decisive moment for market sentiment.
Bitcoin (BTC) bounced from weekly lows on Dec. 4 as analysis demanded a reclaim of the weekly open.
BTC price analysis flips cautiously bullish
As a researcher, I observed an upward trend in the BTC/USD pair, with data from both CryptoMoon Markets Pro and TradingView indicating a nearly $97,000 mark, representing a 1% increase over the course of the day.
The recent instability in the stock market, as seen by the sudden drop in price near the opening of Wall Street, was largely due to political unrest in South Korea, causing the price to dip below $94,000 momentarily.
The “Kimchi Premium” – the gap between Bitcoin prices on South Korean exchanges compared to other platforms – reached an all-time low, turning negative for the first time ever, and then adjusted.
Now, key levels included Bitcoin’s 21-day simple moving average (SMA), currently at $94,560.
In simpler terms, “Skew, a well-known trader, stated in his recent post on a 4-hour chart that the prices had initially dropped (raided) to New York’s open market before reversing. His preferred outlook is for the price to surpass $95K following this dip.
Skew added that reclaiming the weekly open at around $97,270 would be “very key for higher.”
Examining daily timeframes, popular trader and analyst Rekt Capital was nonetheless hopeful.
He informed his X followers that Bitcoin is repeatedly testing a sequence of lower highs as a form of support. This results in progressively longer declines, indicating a buying interest at increasingly lower costs. Despite this, it hasn’t broken the overall upward trendline.
“As long as this continues, BTC should be able to reclaim the ~$96400 support.”
CrypNuevo, another trader, cautioned that there might be a deeper dip in the price chart on a weekly basis, which could potentially lead to a test around the $90,000 mark or even lower.
“50% of the wick in the 1W chart has been filled,” he noted in part of his latest X post.
Bitcoin retail comeback in numbers
Over the past month, a significant number of Bitcoin investors have cashed out their earnings (taken profits). However, recent studies suggest that public interest in buying Bitcoin has increased noticeably.
According to data from the onchain analytics platform CryptoQuant, the number of transactions made by smaller investors over the past 30 days has increased by more than 30%.
In one of their blog posts, contributor Darkfost suggested that the current increase in retail involvement could be a contributing factor to the persistent high demand for cryptocurrencies, despite long-term investors starting to cash out their profits.
“Historically, increased retail participation has often signaled a potential local top. However, it also highlights growing market engagement, which, when combined with institutional interest, can create sustained positive momentum.”
The post saw $100,000 still on the radar as a decisive moment for market sentiment.
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2024-12-04 14:46