Bitcoin range consolidation a ‘healthy next step’ before BTC attempt at $100K
Bitcoin’s price correction extended into a second day as BTC briefly slipped below $93,600 on Dec. 3, but data suggests that an assortment of market participants are keen to buy the dips.
While some traders may be revising their short-term targets and choosing to take profits, Bitcoin price appears to be consolidating by taking a breather after November’s stellar 37% gain.
After an unprecedented parabolic $26,000 gain in November to what some traders deem a psychological hurdle at the $100,000 mark, a period of consolidation where BTC can build some market structure in terms of a defined range with clear support and resistance levels would be a healthy next step.
BTC/USDT, 4-hour chart. Source: TRDR.io / Cointelegraph
During the US session on Dec. 3, Bitcoin’s intra-day low appeared to have been exacerbated by South Korean President Yoon Suk Yeol briefly declaring martial law before retracting the decree hours later. On Korean exchange Upbit, Bitcoin price dropped under $65,000 due to a lack of liquidity while it traded close to $95,000 at Binance.
Beyond the brief blow to investor sentiment, multiple developments that the market deems bullish have either occurred or are pending. On Dec. 2 MicroStrategy announced purchasing 15,400 Bitcoin for $1.5 billion at $95,976 per BTC.
On the same day, publicly-listed Bitcoin miner, Marathon, announced an $800 million dollar proposed private offering of convertible notes, the proceeds of which would be used to purchase more BTC.
Another potentially bullish development for Bitcoin price takes place next week on Dec. 10 when Microsoft shareholders will vote on whether to add BTC to the companies’ balance sheet.
Related: Microsoft’s Bitcoin dilemma: Ride $5T BTC wave or avoid risk
In addition to this, there are rumors that fresh news related to a possible US strategic Bitcoin reserve and an announcement from a country in in the Middle East that is alleged to have built a similar reserve could emerge.
Another factor that has become somewhat easy to take for granted is a consistently robust appetite from the spot Bitcoin ETFs where inflows have remained strong.
Data from SoSoValue shows the spot ETFs registering a $3.38 billion in inflow from Nov. 21 to Nov. 25, and barring a $138 million outflow last week, the month of December started with 3 consecutive days of inflows above the $100 million level.
Spot Bitcoin ETF netflow. Source: SoSoValue
Related: Crypto markets claw back as South Korea reverses martial law
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
