Bitcoin Price: BTC Climbs to $97K After Recent Market Volatility
Bitcoin Price– Bitcoin (BTC) bounced back from its recent lows on December 4, with the price approaching $97,000, reflecting a 1% increase on the day. However, a surge in volatility earlier was triggered by political unrest in South Korea, which briefly pushed Bitcoin’s price below $94,000.
BTC Price Sees Flash Volatility Amid South Korea’s Political Turmoil
The recent volatility stemmed from political turmoil in South Korea, where Bitcoin’s price briefly dipped below $94,000. This was marked by a flash crash in the BTC/KRW trading pair on South Korean exchange BitHumb, dropping to as low as $78,000. During this time, the “Kimchi premium,” the price difference between South Korean exchanges and other global markets, hit its most negative level in history before resetting.
Key Levels for Bitcoin’s Recovery
Bitcoin is now testing crucial support and resistance levels. One of the key levels to watch is the 21-day simple moving average (SMA), currently positioned at $94,560. Popular trader Skew noted that the price dropped into new lows at the New York market open before reversing, emphasizing that a break above $95K is vital for sustaining upward momentum.
Skew also pointed out that reclaiming the weekly open around $97,270 is crucial for Bitcoin’s potential to push higher. “Reclaiming the weekly open at around $97,270 would be very key for higher,” Skew stated in his latest X post, referencing the 4-hour chart.
Bitcoin’s Lower Highs and Liquidity Squeeze
Popular crypto analyst Rekt Capital offered a cautiously optimistic outlook, highlighting Bitcoin’s ability to consistently test the series of lower highs as support. He observed that Bitcoin is producing longer downside wicks while accumulating liquidity at lower prices without breaking the trendline. “As long as this continues, BTC should be able to reclaim the ~$96,400 support,” Rekt Capital shared with his followers on X.
A surge in retail interest may also explain Bitcoin’s recent demand. According to data from CryptoQuant, the 30-day change in buyer volume among smaller investors has increased by over 30%. This shift in retail sentiment could be a signal of a potential local top, as increased retail participation often accompanies market tops. However, this could also signal growing market engagement, which, when combined with institutional interest, could fuel long-term positive momentum.
Historically, increased retail participation has often signaled a potential local top, noted CryptoQuant contributor Darkfost. However, it also highlights growing market engagement, which, when combined with institutional interest, can create sustained positive momentum.
BTC/USD Outlook: Will Bitcoin Sustain Its Upward Trend?
Bitcoin’s price is currently testing important levels, and while short-term volatility is still in play, the long-term outlook remains cautiously bullish. As Bitcoin continues to test its support levels and builds liquidity, market participants will be looking for signs of further upward movement.
For now, Bitcoin’s recovery from its recent lows and the increase in retail participation suggest that there is significant potential for upward momentum, provided it can maintain support above key levels such as $94,560 and $95,000.
However, with the volatility still lingering, traders should remain cautious as market conditions evolve.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.
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