The overall supply of Bitcoin on centralized exchanges has declined by more than 123k units in the past four weeks amid ongoing institutional FOMO.
Bitcoin BTC $109 084 24h volatility: 0.8% Market cap: $2.17 T Vol. 24h: $72.24 B price has continued to consolidate in the past two weeks after failing to reach the much-hyped psychological target of about $100K. The flagship coin has experienced a significant resistance range between $98.7K and $99.6K, signaling potential correction before bullish continuation in the near term.
In the four-hour time frame, Bitcoin price against the US dollar has been forming a potential reversal pattern. From a technical analysis standpoint, Bitcoin price has been forming a potential double top coupled with a bearish divergence of the Relative Strength Index (RSI) in the short term.
According to a popular crypto analyst Michaël van de Poppe, Bitcoin price is likely to retrace towards the support range between $85.3K and $89.5K. However, a potential breakout from the resistance level above $98K will send Bitcoin price beyond $100K in the subsequent weeks, with the next major target about $106k, which coincides with the daily 2.618 Fibonacci extension.
Bitcoin Whales Continues to Accumulate
According to the latest market data from CoinGlass, the overall supply of Bitcoin on centralized exchanges has dropped by 123,108 units in the past 30 days to hover about 2.27 million. More institutional investors have continued to purchase Bitcoins as a strategic reserve to hedge against inflation and fiat devaluations.
On Monday, MicroStrategy Inc (NASDAQ: COIN) announced the acquisition of 15,400 Bitcoins, worth more than $1.5 billion. Meanwhile, MARA Holdings, Inc. (NASDAQ: MARA), a leader in Bitcoin mining, announced the pricing of its offering of $850 million convertible senior notes due 2031.
The US spot Bitcoin ETFs registered a total cash inflow of about $354 million on Monday led by BlackRock’s IBIT. As the US prepares to adopt a Bitcoin strategic reserve, on-chain data analysis by IntoTheBlock shows that long-term holders have been reducing their balances at a lower rate compared to the previous bull cycles.
Bitcoin long-term holders are gradually reducing their balances, now holding 12.45 million BTC—the lowest level since July 2022.
So far, this decline is less severe than in past cycles. Long-term holder balances have fallen by 9.8% this cycle, compared to 15% in 2021 and 26% in… pic.twitter.com/eA5Cckrgs4
— IntoTheBlock (@intotheblock) December 3, 2024
Altseason Reckoning
As Bitcoin price struggles to maintain initial bullish momentum, which was achieved after the re-election of US President-elect Donald Trump, the altcoin industry has attracted more investors. As Coinspeaker explained, the rise of Ripple Labs-backed XRP to the third most valuable cryptocurrency has triggered the entrance of FOMO traders.
However, experts have cautioned crypto investors to keep a watch on altcoin projects with vibrant adoption as not all coins will shine ahead. Moreover, the creation of the spot BTC ETFs, BTC layer two’s (L2), and strategic BTC reserves by institutional investors has made it impossible for crypto cash rotation to the altcoin market from Bitcoin.
Consequently, investors have to watch out for crypto projects with impressive cash inflows through the stablecoins space and wrapped Bitcoin versions.
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