Bitcoin Price Faces Resistance as Institutional Demand Grows
Bitcoin #BTC price has consolidated over the past two weeks after failing to reach the psychological target of approximately $100K. The price is facing resistance between $98.7K and $99.6K, indicating a potential correction before bullish continuation.
On the four-hour time frame, Bitcoin shows signs of a potential reversal pattern. Technical analysis indicates a possible double top formation along with a bearish divergence in the Relative Strength Index (RSI).
Analyst Michaël van de Poppe suggests that Bitcoin may retrace to a support range of $85.3K to $89.5K. A breakout above the $98K resistance could propel the price over $100K in the following weeks, with a major target around $106K, coinciding with the daily 2.618 Fibonacci extension.
Bitcoin Whales Continue to Accumulate
Recent market data from CoinGlass shows that Bitcoin supply on centralized exchanges has decreased by 123,108 units over the last 30 days, now at about 2.27 million. Institutional investors are increasingly buying Bitcoin as a strategic reserve against inflation and fiat devaluation.
MicroStrategy Inc (NASDAQ: COIN) recently announced the purchase of 15,400 Bitcoins valued at over $1.5 billion. Additionally, MARA Holdings, Inc. (NASDAQ: MARA), a prominent Bitcoin mining company, has priced its offering of $850 million in convertible senior notes due 2031.
The US spot Bitcoin ETFs saw total cash inflows of about $354 million on Monday, led by BlackRock’s IBIT. As the US moves toward adopting a Bitcoin strategic reserve, on-chain analysis by IntoTheBlock reveals that long-term holders are reducing their balances at a slower rate compared to 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 struggles to maintain its momentum following the re-election of US President-elect Donald Trump, the altcoin market has gained investor interest. The rise of Ripple Labs-backed XRP to the third most valuable cryptocurrency has attracted FOMO traders.
Experts advise caution, noting that not all altcoin projects will perform well. The introduction of spot BTC ETFs, BTC layer twos (L2), and strategic BTC reserves by institutional investors complicates the rotation of capital from Bitcoin to altcoins.
Investors should focus on crypto projects with strong cash inflows, particularly through stablecoins and wrapped Bitcoin versions.