Crypto Market Recap: Will Bitcoin Reclaim $100K as Sellers Risk Short Squeeze?

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As a seasoned cryptocurrency investor with years of experience navigating the volatile digital asset market, I can see that we are currently witnessing a fascinating dance between bullish and bearish forces. The recent price movements have been reminiscent of a rollercoaster ride, but this is nothing new to those who have embarked on the crypto journey.

In the last 24 hours, the amount of liquidated cryptocurrency trades has decreased dramatically when compared to the approximately $1 billion in liquidations that occurred a week ago on Thursday. Currently, the 24-hour total for liquidated trades in the crypto market is approximately $288.60 million.

Despite the long position losing ground to the tune of $188.88 million, short positions are still only down by $99.75 million. Given these circumstances, let’s explore the possibility of the cryptocurrency market recovering over the coming week.

Bitcoin at $95K Eyes a Reversal Week

In the last 24 hours, Bitcoin (BTC) has experienced a loss of approximately $42.01 million from long liquidations, whereas short sellers have faced liquidations worth around $21.27 million. This totals to about $63.28 million in liquidations over this period, with the open interest currently standing at $60.49 million.

At present, the value of Bitcoin is being exchanged at approximately $95,129, maintaining itself above an essential support threshold and a significant psychological boundary. After a decrease of around 2.17% on Sunday, the Bitcoin price has been finding it challenging to hold its ground at this crucial level.

During the day, the price range varies between a low of $93,639 and a peak of $96,376. This wide price range results in a significant movement, but only by 0.02%. This small price fluctuation within such a large price band has led to the formation of a doji candle.

In simpler terms, Doji candles often indicate a potential change in direction, especially at significant price points. This indecision in the day’s trading can sometimes lead to a positive shift or reversal in the market trend.

Additionally, when the Relative Strength Index (RSI) line stops moving upwards after surpassing the 50% mark, it increases the likelihood of an upward trend in Bitcoin prices. Moreover, the latest resistance to price drops at the 50-day Exponential Moving Average (EMA) level suggests robust support for Bitcoin at lower values.

If the Bitcoin (BTC) price remains higher than its current position throughout the day, it’s likely that a morning star pattern will form, potentially leading to an uptrend.

Metaplanet, Japan’s equivalent of MicroStrategy, announced that it purchased an extra 619.70 Bitcoins for approximately 9.5 billion yen, or around $61 million USD. This investment has increased their Bitcoin return by 309.8% so far this quarter.

Ethereum Holds $3,200 Support.

With Bitcoin holding its position above $95,000, Ethereum has successfully maintained its presence above the $3,000 threshold. At the moment, Ethereum is trading at approximately $3,284, drawing strength from its 100-day Exponential Moving Average (EMA) line. In the last 24 hours, ETH has shown a 2% volatility and boasts a market capitalization of around $396.48 billion with a trading volume of about $30.11 billion.

Although the weekend saw a 5.9% decrease for Ethereum, its price trend appears much like that of Bitcoin, hinting at an upcoming bullish reversal. A doji candlestick pattern has emerged, along with potential signals from Morningstar, suggesting stability before reaching the oversold threshold. The Relative Strength Index (RSI) line is currently level, not yet touching the oversold boundary line.

If the bullish trend persists through the day, we can anticipate a positive or optimistic beginning to this week.

Supply to watch out for: Justin Sun has been aggressively selling Ethereum since its upward trend following Donald Trump’s election win. Last week, the Tron founder sold $143 million worth of ETH, contributing to a 15% drop in Ethereum’s price amid a market crash.

As an analyst, I’ve recently uncovered some interesting insights regarding Sun’s Ethereum transactions. According to Spot On Chain’s findings, Sun withdrew approximately 39,999 ETH from Lido Finance and EtherFi, subsequently depositing the entire sum into HTX on November 10th. It’s important to note that this deposit was made around local Ethereum price peaks, as Sun has now deposited a total of 108,919 ETH, equivalent to roughly $400 million, into HTX since then.

Altcoins Mirror Bitcoin in the Short-term

Beyond Bitcoin and Ethereum, other digital currencies are fighting fiercely to establish their dominance and maintain their status above crucial thresholds. At present, the combined value of these altcoins, not including Bitcoin and Ethereum, amounts to approximately $917.26 billion in the global crypto market.

In simpler terms, the total value of alternative cryptocurrencies (altcoins) has been finding it hard to stay above its 50-day Exponential Moving Average (EMA), and this is accompanied by a ‘doji’ pattern on the chart. The doji suggests there might be a potential reversal in the near future.

Top Gainers and Losers

Despite the bullish struggles in the crypto market, certain altcoins have risen against the tide. Such altcoins are Aave

AAVE
$332.5



24h volatility:
9.9%


Market cap:
$4.99 B


Vol. 24h:
$1.14 B

, Algorand, and Curve DAO token.

In the past 24 hours, Aave’s price has risen by 11%, now standing at $332.09. On the other hand, Algorand (ALGO) experienced a growth of 10.56% to reach a value of $0.3632. Simultaneously, Curve DAO’s price has increased by 4.76%, reaching $0.8246. Aave’s 24-hour volatility is 8.0%, while Algorand and Curve DAO have 24-hour volatilities of 8.0% and 5.0%, respectively. The market caps for Algorand, Curve DAO, and Aave are $2.98B, $1.04B, and $3.3B, with 24-hour volumes of $426.84M, $525.45M, and $332.09M.

Despite the volatile crypto market, HyperLiquid’s HYPE token, which has seen a significant increase in value over the past week, experienced a 22.81% decrease in price over the last day. The current trading price of the HYPE token is $26.36, with a 24-hour volatility of 16.3%. The market capitalization stands at approximately $9.37 billion, and the volume traded within the last 24 hours was around $695.11 million.

According to recent trends, SUI and Movement are among the top decliners, with SUI experiencing a 16.50% decrease and Movement a 4.92% drop. Currently, Movement’s token MOVE is valued at $0.76, while SUI’s token stands at $4.26.

Will Bitcoin Bounce Back to $100K?

With Bitcoin’s price yet to break through the $100,000 resistance, there’s still hope among optimists for a bullish recovery. If backing from US spot Bitcoin ETFs comes into play, the temporary hold at $95,000 might transform into a turning point, potentially sparking a reversal.

Beyond this, the extra backing from the El Salvador government, who invested 29 BTC valued at approximately $2.84 million last week, seems to suggest a potential rebound in the Bitcoin price.

Looking at the increasing amounts of money flowing into US Bitcoin ETFs, there’s a possibility that Bitcoin could regain its $100,000 level. Yet, the decrease in funding rates from 0.0097% on December 17 to 0.0076% suggests that traders are becoming cautious about paying additional fees for long positions, indicating a potential hesitation.

Should Bitcoin’s price maintain its crucial support at around $95,000, it significantly boosts the likelihood of a short squeeze occurring. This scenario, born out of bearish exhaustion, might trigger a temporary bullish phase in Bitcoin, resulting in an upward trend. Consequently, I anticipate that the BTC price may conclude 2024 above $100,000.

Furthermore, the optimism among Binance traders remains the usual. The top traders’ long-to-short ratios based on accounts remain at 1.5517, and based on positions, they remain at 2.0769.

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2024-12-23 11:40