Bitcoin range consolidation a ‘healthy next step’ before BTC attempt at $100K

2024-12-05 13:16:20 Primitive Reading

From cointelegraph by Big Smokey

Bitcoin’s price correction extended into a second day as BTC briefly slipped below $93,600 on Dec. 3, but data suggests that an assortment of market participants are keen to buy the dips.

While some traders may be revising their short-term targets and choosing to take profits, Bitcoin’s BTC$96,963 price appears to be consolidating by taking a breather after November’s stellar 37% gain.

After an unprecedented parabolic $26,000 gain in November that neared what some traders deem a psychological hurdle of the $100,000 mark, a period of consolidation when BTC can build some market structure in terms of a defined range with clear support and resistance levels would be a healthy next step.

BTC/USDT, 4-hour chart. Source: TRDR.io / Cointelegraph

During the US session on Dec. 3, Bitcoin’s intra-day low appeared to have been exacerbated by South Korean President Yoon Suk Yeol briefly declaring martial law before retracting the decree hours later. On Korean exchange Upbit, Bitcoin dropped under $65,000 due to a lack of liquidity, while it traded close to $95,000 on Binance.

Beyond that brief blow to investor sentiment, multiple developments that the market deemed bullish either occurred or were pending. On Dec. 2, MicroStrategy announced purchasing 15,400 Bitcoin for $1.5 billion at $95,976 per BTC.

On the same day, listed Bitcoin miner Mara announced an $800 million proposed private offering of convertible notes, the proceeds of which would be used to purchase more BTC.

Another potentially bullish development for Bitcoin price will take place on Dec. 10, when Microsoft shareholders vote on whether to add BTC to the company’s balance sheet.

Related: Microsoft’s Bitcoin dilemma: Ride $5T BTC wave or avoid risk

Also, there are rumors that news may emerge about a possible United States strategic Bitcoin reserve, as well as an announcement from a Middle East country that is building a similar reserve.

A factor that has become easy to take for granted is a consistently robust appetite from the spot Bitcoin ETFs, where inflows have remained strong.

Data from SoSoValue shows the spot ETFs registering a $3.38 billion inflow from Nov. 21 to Nov. 25, and barring a $138 million outflow last week, the month of December started with three consecutive days of inflows above the $100 million level.

Disclaimer: This specification is preliminary and is subject to change at any time without notice. Amazon Finance assumes no responsibility for any errors contained herein.