The market is circling the bear trend as Bitcoin’s price dropped due to Elizabeth Warren’s proposed strict regulations. Although, BTC briefly rallied but faced resistance near $38,250 after volatile trading between $36,000 and $37,033. It will be interesting to see if it rebounds as expected.
Bitcoin’s Bearish Call; $44K A Bear Trap?
Recent market turbulence has sparked discussions around Bitcoin’s potential rebound, as per insights from Santiment, a data analytics firm. Despite a retreat from its $44,000 high, Santiment’s observations suggest optimism for Bitcoin bulls. The upcoming week holds significance for cryptocurrencies, with the potential for a bullish surge should they detach from recent correlations with stock markets.
Amidst current market uncertainties, Sentiment’s earlier report was also positive, as the sudden surge in USDT supply on crypto exchanges has caught traders’ attention, signaling a potential buying opportunity. The eye-catching surge of 6.9% indicates a promising sentiment shift toward bullishness. Plus, the market appears to be moving away from a phase referred to as a “temporary bear trap,” indicating a possible return to the previous upward trend.
What next? Will BTC Nosedive to $40,000?
Bitcoin’s recent price plunge to $40,000 was attributed to overheating and significant sell-offs from influential players like Bitcoin Mara Pool. This period also witnessed notable Bitcoin movements within exchanges and across anonymous wallets, involving substantial transactions totaling millions of dollars.
Moreover, Whale Alert, a platform tracking crypto movements, highlighted significant transfers to prominent exchanges such as OKX, Coinbase, and Binance. Moreover, Bitcoin experienced significant fluctuations, primarily driven by ‘whales’, with significant transfers between Kraken and Bitfinex. This indicates that Bitcoin has completed a temporary bear trap, with 549 and 646 BTC transferred to OKX and Coinbase, 1,500 BTC sent from Kraken to Bitfinex, 1,300 BTC sent back and forth, and 818 BTC transferred to Binance.
The recent volatility in the cryptocurrency market has fueled discussions about Bitcoin’s future trajectory, leaving both investors and analysts curious about its potential rebound. The on-chain data provides a nuanced perspective on the evolving dynamics of the digital asset, offering glimpses into its possible recovery amid the current market turbulence.
Key Trends Influencing BTC Price?
Looking at the Bitcoin price movements one thing is clear, despite short-term correction BTC is here to stay. But there are certain factors that you need to know before jumping to the surge hype. The Kobeissi Letter highlighted the significance of today’s release of November’s CPI Inflation data, coinciding with the FOMC meeting on December 12-13. These events significantly influence Bitcoin’s price. The CPI data drives FOMC decisions on interest rates, affecting Bitcoin—dovish stance being bullish, hawkish being negative. Additionally, the OPEC Monthly Report and November’s PPI Inflation data on December 13 are key indicators impacting Bitcoin due to their inflation influence.