As an analyst with over two decades of market experience under my belt, I’ve seen more than a few rollercoaster rides like this one with Bitcoin. The current volatility is reminiscent of the wild west days of early internet stocks, where fortunes could be made and lost in a single day.
On Monday, a significant shift occurred that caused the Bitcoin price to plummet by up to $7,000 throughout the day. This dramatic drop forced approximately 532,000 traders out of the market at an estimated cost of $1.62 billion in the last 24 hours. The question now is: Has the dip ended? Meanwhile, MicroStrategy has made another large purchase.
Huge volatility
The extreme fluctuation persists as Bitcoin oscillates near the six-figure mark of $100,000. Just five days ago, its value nearly reached $104,000, but then plummeted swiftly to almost $92,000 – a dramatic drop of around $12,000 in a single day. This was followed by a quick rebound of approximately $7,000 on Monday.
Rekt traders
As reported by CoinGlass, long and short traders collectively faced significant losses last week, with long traders experiencing liquidations totaling approximately $1.41 billion, while short traders suffered losses amounting to around $185.29 million. This adds up to a staggering combined total of $1.59 billion in losses. On the bright side, this event seems to have reduced the overall leverage in the market significantly.
MicroStrategy buys big again
In an opposing move to my selling activities, I, as an analyst, have been on the buying end, acquiring a substantial amount of Bitcoin – specifically 21,550 units. This recent purchase came with a hefty price tag of $2.1 billion, making the total Bitcoin holdings under my watch a staggering 423,650 BTC.
Blackrock dominates the U.S. ETF buying
In other news, as MicroStrategy continues its aggressive bitcoin purchasing spree, it’s worth noting that Blackrock’s IBIT Spot Bitcoin ETF is following suit. On Monday alone, US ETF funds amassed a total of 4,780 bitcoins, with IBIT contributing approximately 3,940 of these new acquisitions.
US/Russia about to start a BTC treasury race?
There’s growing interest in purchasing Bitcoin among governments, particularly on a national level. For instance, there are rumors that the U.S. Treasury might acquire $76 billion worth of Bitcoin within the next five years. Similarly, speculations suggest that the Russian government is contemplating adding Bitcoin to their treasury holdings as well.
Anton Tkachev, a Russian deputy, has put forth a proposal to establish a Bitcoin reserve. He stated that as countries subjected to Western sanctions increasingly turn towards cryptocurrencies, they are emerging as the primary method for cross-border payments on an international scale.
Buyers respond rapidly to big BTC fall in price
On Monday, the 4-hour Bitcoin chart indicates that the candles’ lower shadows reached approximately $94,200. Yet, since these are merely lower shadows instead of complete candle bodies, it suggests that buyers aren’t readily willing to let the price fall significantly without a substantial buying surge in response.
The cost dipped below the ascending trendline, yet it found robust support at the 0.618 Fibonacci level. Given that the brief-term momentum signals have reset, it’s expected that the price increase will persist from here on out.
Bullish situation for BTC on the monthly chart
As an analyst, I find that examining the monthly Bitcoin chart offers a clear bird’s-eye perspective on the broader market trends. Notably, the current price has surpassed the upward trendline that originates from the double top during the previous bull run, suggesting a potential resumption of the bullish momentum in the long term.
As an analyst, I’m observing that the Relative Strength Indicator at the chart’s bottom is suggesting that Bitcoin might be overbought currently. However, intriguingly, the indicator line has managed to break through its downward trendline, indicating a potential shift in momentum. If this upward movement maintains and the line remains above the broken trendline, there’s a strong possibility for further growth in Bitcoin’s price.
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2024-12-10 14:06