Bitcoin’s push for $100,000 is hitting a wall of resistance
Bitcoin bulls are starting to express some doubts after what seemed like an inevitable march to an all-time high of $100,000 is losing momentum. “While we are seeing strong institutional buying pressure, especially from entities like MicroStrategy’s ongoing accumulation strategy, the broader crypto ecosystem is experiencing a diversification of capital flows from both institutional and non-institutional participants,” said Chris Newhouse, research director at Cumberland. Laboratories.
As Bitcoin’s price plateaus, interest in other digital assets is increasing, such as the second-largest cryptocurrency Ether and The former president has become a proponent of crypto, raising expectations for friendlier U.S. regulation of the often controversial asset class.
The Bitcoin and Ether exchange-traded fund groups each posted record monthly net inflows of $6.5 billion and $1.1 billion, respectively, in November, according to data compiled by Bloomberg. Friday’s daily Ether ETF subscriptions also hit an all-time high.
“After six weeks of positive inflows, we have seen a week of selling and derivatives traders are using ETF demand as a macro gauge of direction,” Fadi Aboualfa, head of research at Copper Technologies Ltd., said in a note Monday. “Early Bitcoin ETF investors may be eager to rebalance their portfolios as they have more than doubled their money.”
Options market
Meanwhile, the crypto options market has seen more downside protection in Bitcoin at later expirations this month, while Bitcoin futures have seen moderate leverage, which remained muted after the digital asset hit the $99,000 mark, according to Coinglass data.
“On-chain data points toward active profit realization from traders in the medium-term cohort (traders who bought between 55k and 70k), and profit taking was particularly intense on BTC trades north of 90k,” Vetle Lunde said. head of research at digital asset research firm K33, citing data from The Bitcoin Lab.
Lunde said this metric is an estimate that tracks Bitcoin’s movements on-chain, categorized by prices at the last move. However, it’s rare to see such a significant concentration within one price cohort, so it suggests that cohort is particularly active at current prices, he said.
Open interest for both Bitcoin options and futures contracts has remained at subdued levels following major liquidations during Bitcoin’s rally in recent weeks.
“The market has taken a break over the past ten days as Bitcoin is just below 100,000 points. The vols are slightly compressed to the 64th percentile, while Ether is significantly higher at the 81st percentile,” said Wintermute OTC trader Jake Ostrovskis.
Adding to market jitters on Monday was a post on had been moved. Prices often fall when traders speculate that large amounts of Bitcoin could hit the market all at once.
Bitcoin was steady at $95,734 at 9:33 a.m. in Singapore on Tuesday. It reached an all-time high of $99,728 on November 22.
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