Bitcoin had one of its biggest declines on Monday, printing one of its longest candles over the last seven days.
The apex coin started trading at $101k the previous day but was retraced due to a massive selloff. It quickly lost momentum, losing the $98k support and $96k. It continued downwards, hitting a low of $94,249 before rebounding. The asset closed with losses of almost 4%.
There are several speculations about the cause of the previous day’s gains. The bears taking profit was undoubtedly the main reason. Nonetheless, considering the massive bullish fundamental, many wonder about the trigger.
Amazon announced it is considering investing some of its cash reserves into Bitcoin. The Russian Duma may start deliberating on having a BTC reserve. Microstrategy went shopping during the previous intraday session, spending over $2 billion on another purchase of the apex coin.
Michael Saylor’s company may be the trigger. This is not the first time it has announced a purchase, and prices reacted with the downtrend. The frequent trend marks the large purchase as a sell signal for the retailers. They take profit as soon as the firm goes public about its acquisitions and will only buyback after the dip.
The same trend played out on Monday, resulting in the massive dip. The downtrend is ongoing, and the apex coin sank a little lower. It shows signs of recovery, and trades are close to their opening price.
US Traders Remain Bullish Amidst Declines
Onchain data shows that US traders maintained strong buying pressure amidst the downtrend. While traders panic sold on Binance, accounting for a vast proportion of small investors. Although the ongoing selloff on the platforms shows a broader bearish sentiment, more prominent players remain optimistic.
The Coinbase premium remains green as institutional buyers remain optimistic. Many retailers using the platforms are bullish for several reasons. They believe the government’s crypto-friendly policies will cause a massive increase in adoption.
Donald Trump’s victory bolsters confidence of a massive rally. Some X users alleged that he is committed to sending Bitcoin above $150k during the first few months of office. The president’s recent increase in crypto activities reaffirms this commitment.
The latest sentiment comes amidst FUD from several regions. The Korea premium, which shows Asian traders’ behavior, shows notable FUD within the area. It is currently negative as selling pressure mounts. Data from SoSovalue shows significant outflows from the Hong Kong Bitcoin spot ETF.
On the other hand, the fund premium is positive, as US traders maintain strong buying pressure. ETF data shows that US spot exchange-traded funds received constant inflows, resulting in positive net flows. The bullish trend, which started on Nov. 27, shows no signs of halting.
Bitcoin to Hold $92k
Bitcoin dipped to $92k last week after hitting a fresh ATH. Its most recent decline saw the asset retrace to a low of $94k. The slight increase in lows shows a massive demand concentration of around $94,000. Data from Coinglass show growing buying orders around $96k. This may indicate a growing attempt to prevent another dip to $94k.
The one-day chart hints at when the breakout may happen. The moving average convergence divergence has been declining since Nov. 24. It is currently at the same level as during the first half of November. The asset shows no signs of any impending surge which means the price ranging may continue.
MACD may decline to 1,311 before a price breakout. BTC trading within the $102k and $94k channel may result in no significant change this December. The asset may experience another dip before the breakout.
Bitcoin next stop may be $110k.
