Bitcoin ($BTC) moves $12,000 in one day

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As a seasoned crypto investor with battle-tested nerves and a portfolio that has weathered numerous market storms, I can confidently say that Thursday’s Bitcoin volatility was another day at the office. The precipitous nosedive from $104,000 to $92,000 in just a few minutes might have given some traders heartburn, but it’s important to remember that these are the very swings that can make or break a crypto portfolio.

On a single day, the value of Bitcoin ($BTC) surged to reach approximately $104,000 before plummeting to around $92,000, showcasing significant price fluctuations. These dramatic shifts resulted in over 158,000 traders being liquidated with combined losses amounting to $873 million on Thursday. So, what can we expect from Bitcoin in the future?

Massive volatility liquidates traders

On Thursday, a significant market fluctuation took numerous traders by surprise. Initially reaching close to $104,000 in the early hours of the day, the price remained stable for approximately 12 hours before plunging over several subsequent hours, dropping below $100,000.

Consequently, the sudden turn of events left traders in a state of fear, as the price dropped drastically from $99,000 to $92,000 within a brief period, wiping out most of the long positions during the descent.

A precipitous nosedive

On Thursday, Bitcoin’s hourly chart clearly illustrates the dramatic drop in its value. Few could have anticipated such a steep decline, and given this suddenness, many traders holding long positions would have faced liquidation levels as low as $92,000, effectively depleting their accounts.

As a researcher, I found it intriguing that the wick’s descent halted right at the upward trendline, a line that traces back to the double top of the 2021 bull market. This trendline now holds significant importance as it serves as a potential support level in our analysis.

Heavy buying from U.S. Spot Bitcoin ETFs

On Thursday, the price fluctuations were not primarily due to increased buying of Bitcoin by U.S. Spot Bitcoin ETFs. Instead, it was the opposite: these ETFs actually bought additional 7.58K BTC on that day. However, a larger amount, 7.62K BTC, was purchased by the IBIT Blackrock ETF. This was during a time when Grayscale’s GBTC fund was selling off 1.51K BTC, which seems to have had a greater impact on the price.

Trump is pivotal for crypto fortunes

As long as demand stays extremely favorable, the regulatory climate for cryptocurrency within the U.S. continues to soften even further. Following Paul Atkins’ nomination by president-elect Donald Trump for the position of Chair at the Securities and Exchange Commission (SEC), David Sacks – a former PayPal executive – was then tapped for roles as Head of AI and Crypto Advisor.

Under President Donald Trump’s leadership, there has been a significant shift in the fate of cryptocurrencies within the United States. He has openly expressed his desire to establish the U.S. as the global hub for cryptocurrencies, and by appointing individuals who are sympathetic to crypto in key positions within his new administration, he is clearly demonstrating his commitment to this goal.

Ascending trendline gains importance

The monthly chart for Bitcoin shows how important the ascending trendline is. The Bitcoin bulls will be looking to keep the price above this trendline by the end of the month, and a move above the 1.618 Fibonacci, making this support, would be the next target. Overhead, the 2.618 at $155,000 is a target possibility going into 2025.

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2024-12-06 14:07