TLDR
Bitcoin’s price reached $97,000 with a 1.3% gain in 24 hours, showing recovery after dropping to $94,000 last week
The cryptocurrency market’s total value stands at $3.24 Trillion with a trading volume of $97.94 billion
Bitcoin’s leverage ratio and open interest have decreased since November 21, indicating reduced market risk
The largest Bitcoin exchange outflow since 2022 occurred last week, reducing exchange supply by 3%
Technical analysis suggests potential price movements between $92,000 support and $105,000 resistance levels
Bitcoin’s price has shown signs of recovery, reaching $97,000 with a 1.3% increase over the past 24 hours. This uptick comes after last week’s decline that saw the cryptocurrency drop to $94,000.
The broader cryptocurrency market has demonstrated renewed strength, with total trading volume reaching $97.94 billion. The entire crypto market now stands at a valuation of $3.24 Trillion, marking a 2.21% increase overnight.
Bitcoin’s trading volume has reached $34.27 billion in the past day, with the asset recording a 4.21% gain over the last month. The cryptocurrency’s year-to-date return currently sits at 5.24%, despite experiencing a minor decline of approximately 1% over the past week.
A key development in the market has been the largest net outflow of Bitcoin from exchanges since 2022, which occurred last week. This movement resulted in a 3% reduction in the supply of Bitcoin held on exchange platforms, matching levels last seen following the FTX exchange collapse.
Data from CryptoQuant reveals a decrease in leverage and open interest ratios since November 21, following the presidential election. This reduction suggests a gradual unwinding of leveraged positions in the market.
Much of the withdrawn Bitcoin has been transferred to Coinbase Prime or used to back exchange-traded funds (ETFs), indicating a shift toward long-term holding strategies among institutional investors.
Technical indicators present a mixed picture for Bitcoin’s short-term price action. The Moving Average Convergence Divergence (MACD) shows a persistent red histogram, suggesting selling pressure continues to outweigh buying activity.
However, the 50-day Exponential Moving Average (EMA) appears poised for a positive crossover with its 200-day counterpart, potentially indicating an upcoming positive price trend for the week ahead.
Current market dynamics suggest Bitcoin faces immediate resistance at $100,000. If buyers maintain momentum, the price could potentially reach $105,000 in the near term.
Support levels have formed at $95,000, with a lower support trend level established at $92,000. These levels may serve as crucial bounce points if selling pressure increases.
Large buyers have been observed “stacking on dips,” suggesting confidence in future price appreciation among institutional players. This accumulation behavior has persisted despite recent price fluctuations.
The movement of funds from exchanges to private wallets or institutional custody services typically indicates a preference for long-term holding over short-term trading strategies.
The reduced leverage in the market, combined with substantial exchange outflows, points to a more measured approach from market participants. These metrics suggest traders are taking fewer risks with leveraged positions.
Exchange reserves have been declining steadily, with more Bitcoin moving to institutional custody solutions and ETF-backing reserves. This trend represents a shift in how investors are choosing to hold their Bitcoin.
The most recent data shows Bitcoin maintaining stability above $97,000, with trading volume remaining consistent at $34.27 billion over the past 24 hours.
