Tuesday night, December 5, saw a 5% increase in the price of Bitcoin, pushing it over $44,300. With a market capitalization of $855 billion, Bitcoin is currently trading at $43,744.
Whales of Bitcoin Are Back Purchasing
The price movement of Bitcoin exhibits a strong correlation with the activity of wallets that currently hold 100 or more Bitcoins, as evidenced by the latest updates from on-chain data provider Santiment.
48 of these large whale wallets have returned during the last four weeks, after a notable drop-off that was noted on November 9. These sizable wallets’ reappearance indicates that significant market participants are still interested in and involved in the Bitcoin space, which provides more context for the ongoing dynamics affecting the price of BTC.
Spot-driven dynamics are in the spotlight in the bull market that is currently in place because major derivatives data is still largely stable. According to Greeks.Live, futures premiums are holding steady at 10% while options implied volatilities (IVs) are showing some modest gains.
The continued upswing and the recent announcement of an impending ETF passage highlight how strong this spot-driven bull market is. Because there are less risks to the downside, it reinforces the idea that the bull market is a long-term trend rather than just a passing fad.
What Can Cryptocurrency Investors Anticipate?
The price movement of bitcoin this week has already thrilled enthusiasts, with experts like Max Keiser predicting a “God candle” to $100K. Technical charts, however, indicate that at this time, investors should hold off on making any new investments.
Prominent cryptocurrency analyst Ali Martinez warns of a possible correction in the price of Bitcoin in a note. Martinez indicates that the correction may start in the next seven to forty-eight hours by pointing to the TD Sequential indicator.
.. Analysis of the daily and three-day charts served as the foundation for this evaluation.
A #Bitcoin price correction is coming… The question is when?
— Ali (@ali_charts) December 5, 2023
Michael van de Poppe, a cryptocurrency analyst, claims that a new price range has emerged. He thinks the current move will soon come to an end and anticipates a consolidation period prior to a possible last push in the $48,000–50,000 range, especially in the pre-ETF period. Van de Poppe sees sideways movement after this, with a support level between $36,000 and $38,000. It is recommended that investors keep a close eye on these possible market movements.
Our new range has established. Probably this move is going to finish soon, consolidate for a little and have a final push towards $48-50K pre-ETF.
— Michaël van de Poppe (@CryptoMichNL) December 5, 2023