Bitcoin Rallies Above $100k, Whales Continue Accumulation

Bitcoin (BTC) experienced a significant rally on Wednesday, surpassing the crucial support range of $94.3k to $96.6k. The flagship cryptocurrency briefly retested the previous all-time high (ATH) of $101,219 to $101,998 before retracing slightly to trade around $100,780 on Thursday.

Market Dynamics

• Increased Open Interest: Bitcoin Futures Open Interest (OI) surged by 6% to approximately $62.8 billion, indicating heightened market activity.
• Declining Funding Rates: The recent heavy daily liquidations in the leveraged market have significantly reduced Bitcoin’s funding rates, suggesting a more balanced market.
• Whale Accumulation: The supply of Bitcoin on centralized exchanges has been steadily declining, driven by strong demand from institutional investors. Long-term investors have been pouring billions into Bitcoin, with monthly inflows exceeding $80 billion in the past year.
• ETF Inflows: US spot Bitcoin ETFs have witnessed significant inflows, with a net cash inflow of $223 million on Wednesday, bringing the cumulative total to approximately $34.58 billion.

Technical Outlook

• Double Top Formation: Bitcoin price has formed a potential double top pattern on the daily timeframe, coupled with bearish divergence on the daily Relative Strength Index (RSI), suggesting a potential midterm correction.
• Upside Potential: A consistent close above $102k could propel Bitcoin towards $120k, aligning with the 0.618 daily Fibonacci extension.
• Downside Risk: Bitcoin price could potentially retrace towards the support level above $85k before resuming the bullish rally.

Conclusion

Bitcoin’s recent rally above $100k, coupled with strong institutional demand and whale accumulation, indicates a bullish market sentiment. However, technical indicators suggest potential for a short-term correction.

December 2024, Cryptoniteuae