BTC Price on the Brink: 5 Bitcoin Trends to Watch This Week
As the year’s last week begins, traders are on edge due to a combination of volatility, macroeconomic uncertainty, and changing market dynamics in the price movement of bitcoin. With short-term holders facing a crucial profitability juncture and monthly support levels under investigation, the cryptocurrency market is preparing for possible volatility. On the other hand, institutional interest is still high as long as whales are present, and Binance’s stablecoin reserves are close to all-time highs, suggesting potential further movements. Here are 5 things to look out for this week in Bitcoin.
Bitcoin Volatility Brewing: Traders Focus on Liquidation Zones Near $92K
According to data from Cointelegraph Markets Pro and TradingView, Bitcoin is currently trading close to the lows of its December trading range following a flat weekend that was broken by further price declines. The Christmas period has been marked by a lack of overall momentum, but there are indications of short-term change as the final two Wall Street trading days of 2024 begin. In part of his most recent post, Trader Skew referenced the weekly open and the value area low. Skew predicted that short-term price movement would continue to be significantly influenced by the weekly open, which was recorded at about $93,550 on Bitstamp.
Price is currently trading around key VAL, last week’s low & HTF trend. Volatility is brewing imo.
Skew
The BTC/USD pair was able to correct for several inefficiencies that were brought to light by fellow trader CrypNuevo the day before. Price should likely close these imbalances (OI gaps) next week, he said, indicating goal levels approaching $93,500 in terms of market efficiency. He added that regions with large liquidations, which are currently at or near the $92,000 mark, would mandate additional declines.
Zones with high amounts of liquidations tend to act as magnets. Sometimes we can see reversals from these zones, so keep an eye on them.
CrypNuevo
Stagflation Fears Loom as Jobless Claims Kick Off 2025 Macro Data
Unemployment statistics will once again be the primary macroeconomic data for the next several days after another calm holiday week for US markets. On January 2, the first major macro figures for risk assets of 2025 will be released, along with the first jobless claims. Amidst stagflation indicators, cryptocurrency remains susceptible to job shocks. Markets are still pricing out the possibility of additional rate reduction next year, even though the Federal Reserve has one month until its next interest rate meeting.
Investors are worried that we will see a repeat of the 1970s inflation situation. The Fed is cutting rates due to a weaker labor market while inflation rebounds. The beginning of stagflation is here and the Fed has yet to acknowledge it. We could see 4%+ inflation next year.
Bitcoin’s Path to $90K: How Short-Term Holders Shape Market Cycles?
Even though the Bitcoin bull run paused above $108,000, as Cointelegraph just revealed, the December price decline is still manageable. When comparing current drawdowns in bull markets to past cycles, the 15% dip is unquestionably at the lower end of historical behavior. Glassnode, an on-chain analytics tool, provides data that contextualizes the route toward $90,000.
Following the historic high of $73,800 for Bitcoin/USD in March, Glassnode suggested that short-term holders (STHs) be used to predict when the market will recover. It implied that both realized losses and the Market Value to Realized Value (MVRV) indicator for Bitcoin were involved.
We now have a compass to uncover structures where the short-term holders potentially reach seller exhaustion,
Glassnode
Santiment Highlights Whale Activity as Key to 2024’s Final Crypto Surge
According to analysis, cryptocurrency markets might have what it takes to close out 2024 strongly, if not at a record high. On December 28, the research firm Santiment highlighted whales as a possible source of green candles for the coming year in some of its most recent market assessments. It said that as short-term positive momentum waned, ordinary investors became indifferent, and there was a lack of overall trading volume.
In the final days of 2024, trading volume is way down across crypto sectors. Overall, there has been -64% less trading in the past week compared to the previous week (which included Bitcoin’s all-time high). The trading downtrend of trading, particularly among speculative altcoins, is not a surprising development. With the holidays here and traders getting their year-end finances in order, the final week of December is often one of the least active times of each year. With all of this said, if whales continue showing their strong accumulation trend, the lack of retail participation may actually lead to at least one final big unexpected 2024 pump while retail pays little attention.
Santiment
Stablecoin Reserves on Binance Indicate Rising Buying Pressure Despite Market Dip
Despite a brief decline in cryptocurrency, stablecoin reserves are a good sign that investor confidence is on the rise. Onchain analytics company CryptoQuant disclosed in a Quicktake blog post on December 30 that the biggest exchange in the world, Binance, had just amassed record stablecoin reserves. In just 18 months, Binance’s total stablecoin reserves nearly quadrupled to $31 billion on December 11. Since then, according to CryptoQuant, the Binance reserve total has only slightly decreased, standing at about $29.7 billion as of December 29.
With reserves remaining around the $30 billion level, it suggests that investors remain actively positioned in the market, potentially maintaining a strong buying pressure,
Darkfost
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