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Bitcoin Completes ‘Temporary Bear Trap,’ Report Says, Is BTC to Rebound?

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Bitcoin Completes ‘Temporary Bear Trap,’ Report Says, Is BTC to Rebound?

Tue, 12/12/2023 – 10:49

Bitcoin Completes 'Temporary Bear Trap,' Report Says, Is BTC to Rebound?
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In a recent tweet, on-chain data vendor Santiment shared that despite Bitcoin losing the recent $44,000 peak and shedding 4.39%, BTC bulls still have a good reason to remain optimistic.

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USDT supply on exchanges shows big increase

Santiment spread the world that currently many traders feel uncertain about the volatility Bitcoin demonstrated and are moving their BTC back to crypto exchanges.

Still, the report made by the data vendor points out that this is a “great sign for bulls” since the amount of USDT on crypto exchanges has increased by 6.9% compared to the state of things half a year ago. USDT on crypto trading platforms represents “dry powder,” or buying potential for crypto.

In an earlier tweet, Santiment stated that overall, the markets now seems to be completing what seems to be a “temporary bear trap” – a pattern when a market that had been moving in an upward trend suddenly reverses, causing bear traders to begin to sell.

After this, the market often makes another reversal and catches up with the previous upward trend. Thus, bears who fall for this are driven to lose profits. The Santiment team has provided two reasons for bulls to remain optimistic and possibly expect a Bitcoin rise to follow.

Bitcoin price in volatility as large BTC amounts getting moved

On Monday, the Bitcoin price demonstrated a sudden nosedive to the $40,000 level, shedding more than 8% within 24 hours. As reported earlier, this plunge was caused by Bitcoin being overheated and several large sales made by top market players, including Bitcoin Mara Pool.

In the meantime, large amounts of Bitcoin have been on the move over the past 24 hours, according to popular crypto tracking platform Whale Alert. Large crypto players, known as “whales” within the crypto community, have been depositing BTC to large crypto exchanges, withdrawing BTC from them and just moving big Bitcoin chunks between unknown wallets.

The amount of 549 BTC and 646 BTC has been transferred to OKX and Coinbase, respectively. A total of 1,500 BTC (worth $61,757,851) was sent from Kraken to Bitfinex, with 1,300 BTC sent the other way around before that. The amount of 818 BTC was transferred to Binance from an anonymous wallet. An unknown whale made a withdrawal of 1,042 from Coinbase.

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