The overall supply of Bitcoin on centralized exchanges has continued to shrink in the recent past fueled by rising demand from institutional investors.
Bitcoin price BTC $70 750 24h volatility: 1.0% Market cap: $1.41 T Vol. 24h: $26.43 B rallied more than 4% on Wednesday to briefly trade above $97.3K before retracing towards $95.3K on Thursday, during the earlier European session. Although the flagship coin is not fully out of the woods from a potential midterm correction, the recent rebound triggered a notable bullish outlook in the altcoin industry.
According to the latest market data, the total crypto market cap surged over 2% in the past 24 hours to hover about $3.5 trillion at the time of this writing. Ethereum price ETH $2 080 24h volatility: 1.6% Market cap: $251.03 B Vol. 24h: $10.35 B rebounded above $3.5K, thus increasing the ongoing crypto cash rotation from Bitcoin to the altcoin industry.
Furthermore, Bitcoin dominance has continued to shrink in the past few days from 61% to about 58% today. As a result of the heightened crypto volatility, more than $280 million was liquidated from the leveraged cryptocurrency market, mostly involving short traders.
Major Factors that Contributed to Bitcoin Price Rebound Today
Bitcoin price turned bullish in the past 24 hours catalyzed by robust fundamentals. For instance, the United States spot Bitcoin ETFs registered a net cash inflow of about $103 million, with none of the issuers reporting a net cash outflow on Wednesday.
Although BlackRock’s IBIT did not register a net cash inflow, Fidelity’s FBTC and Bitwise (BITB) reported a net cash inflow of about $40.2 million and $48 million respectively. Consequently, the US spot Bitcoin ETFs now hold BTCs worth more than $104 billion.
Bitcoin price also reacted to the rumors that Paul Atkins, a former SEC commissioner, is the favorite among the top transition team members selected to potentially lead the agency. Moreover, Atkins is considered a pro-crypto leader with the ability to steer forward the Web3 industry with a pro-innovation agenda.
The Bitcoin bulls led the altcoins in an upward trend after the Israeli security cabinet on Tuesday night approved a ceasefire deal with Hezbollah in Lebanon, thus signaling a stable market in the Middle East ahead.
Consequently, the overall Bitcoin’s Open Interest surged over $62 billion, indicating heightened demand, especially from whale investors. Moreover, the overall supply of Bitcoin on centralized exchanges declined by more than 15K in the past 24 hours to below 2.3 million units.
Midterm Targets
According to a popular crypto analyst Michaël van de Poppe, Bitcoin price will likely test $100K in the near term fueled by institutional FOMO. However, Poppe cautioned traders that Bitcoin price could drop to the support level above $85K before continuing with the bullish momentum in the coming weeks.
Great move of $BTC.
Bounced from the first area of interest –> question now is whether we'll see a new ATH or whether we'll test the lows.
I wouldn't be surprised with a $100K test.
However, it's risk-on period, which means that altcoins will continue to run. pic.twitter.com/Lxw9pT0NXk
— Michaël van de Poppe (@CryptoMichNL) November 28, 2024
From a technical analysis standpoint, Bitcoin price is already in a macro bull run as the weekly and monthly Relative Strength Indexes (RSI) rallied above 70% level.
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