Bitcoin price is once again on an upward trajectory after consolidating around $95,000 last week amid reduced profit-booking activity as well as selling pressure from long-term holders.
By Bhushan Akolkar
Edited by Julia Sakovich
Updated
3 mins read
After consolidating for some time around $96,000 levels, Bitcoin price BTC $105 166 24h volatility: 0.5% Market cap: $2.08 T Vol. 24h: $27.85 B is on an upward trajectory gaining 1.5% today, eyeing a move towards $100,000 and above. Over the past week, BTC price showed limited movement consolidating in the range of $92,000 to $98,000.
As BTC approached the $100,000 level, it faced strong selling pressure from long-term holders. However, Glassnode data shows that there’s a notable reduction in profit booking, with the daily realized profits sent to exchanges reducing to $277 million per day.
This figure marks a sharp 42% decline from the November 16 peak of $481 million, signaling that traders are holding their positions rather than cashing out gains. Analysts see this as a positive development stating that BTC is entering a consolidation phase before the explosive rally ahead.
The subdued profit-taking and narrow trading range suggest investors are preparing for the next significant price move, with many eyeing the $100K milestone.
Courtesy: Glassnode
However, Bitcoin experienced volatility on Tuesday following the political turmoil in South Korea as President Yoon Suk Yeol declared martial law for a brief period before withdrawing the decision. Bitcoin experienced a sharp disparity in prices across exchanges, plunging below $65,000 on South Korea’s Upbit due to liquidity constraints, while maintaining a price near $95,000 on Binance.
Although Bitcoin price has been experiencing strong volatility, the buying from big players has continued simultaneously. Earlier this week on December 2, MicroStrategy announced another purchase of 15,400 Bitcoin for $1.5 billion at $95,976 per BTC.
On the same day, Bitcoin miner MARA Holdings, which is publicly listed, announced an $850 million proposed private offering of convertible notes. The funds raised will be used to acquire additional Bitcoin.
Besides, the entire Bitcoin community is eagerly awaiting the Microsoft shareholders’ vote on whether or not to include Bitcoin on the company’s balance sheet. Last weekend, Michael Saylor shared the blueprint on how Microsoft can add $5 trillion to the shareholders’ wealth by putting all of the treasury into Bitcoin and raising debt to buy more BTC.
Additionally, there are rumors circulating about the possibility of the US establishing a strategic Bitcoin reserve. This move would be in stark contrast to former President Trump’s firm stance on the US dollar as the dominant global currency, as noted by TD Cowen analyst Jaret Seiberg.
“It is quite possible Trump will still tout a Bitcoin reserve on social media or mention it in a speech. That is distinct from using the significant political capital that would be required to make it happen,” the analyst added.
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Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.