Bitcoin Price Drops 5% to $95.9K Amid Increased Volatility and Whale Accumulation
Bitcoin's price has become bearish, falling over 5% in the last 24 hours to approximately $95.9K after briefly surpassing $100K earlier in the week. Key developments include:
- Liquidations exceeded $711 million, primarily affecting long traders.
- Bitcoin slipped below critical support of $97K-$99K, indicating potential midterm corrections.
- A head and shoulders pattern and a bearish divergence in the Relative Strength Index suggest further declines, possibly to a support level around $92K.
- If this support fails, predictions indicate a drop to $85K.
Whale Accumulation
Despite the downturn, whale investors continue to accumulate Bitcoin. Recent data shows:
- Centralized exchange supply decreased by 11,783 coins, reaching about 2.19 million, a multi-year low.
- BlackRock's US spot Bitcoin ETF issuers reported a net cash inflow of $596 million recently, though overall inflows were around $52 million due to outflows.
Future Outlook
The macro bull run in cryptocurrency may persist, especially following President-elect Donald Trump's inauguration. Factors include:
- Potential bullish regulations could enhance market conditions in the long term.
- Countries like the Czech Republic are considering Bitcoin as an inflation hedge.
- Growing whale demand might push Bitcoin prices beyond $110K.