Bitcoin resumed its uptrend after a massive decline last week. It lost almost 4% on the first day, dipping to a low of $94k.
The huge increase in selling pressure overwhelmed the bulls, who failed to soak up the excess supply. News of MicroStrategy going shopping caused notable panic among traders, who decided to sell. Onchain data pointed to most of the sales coming from Binance, suggesting retailers were behind the dump.
The dump resulted in further fear, uncertainty, and doubt as the asset sank to the previous low the next day. Nonetheless, BTC recovered on Wednesday with an almost 5% surge, peaking at $101,900 from $96,600.
One buildup to the most recent milestone was that the bulls maintained prices above $100k for over three days before the breakout. The apex coin attained a new ATH on Sunday, surging from $101,400 to $105,149. Closing with gains exceeding 3%, the uptrend continued during the current intraday session.
It rebounded after a slight decline and surged as the buyers rallied the market. It registered a fresh all-time high at $107,821. Although trading below it, there are several speculations as to the reason for the new milestone.
Nonetheless, one probable cause is renewed optimism among investors. Toward the end of the previous week, several bullish fundamentals took center stage. One such was a Japanese lawmaker’s proposal to explore the possibility of a strategic Bitcoin Reserve.
The United States’ president-elect also expressed optimism in the nation, implementing a strategy BTC reserve once he assumes office. Other sources claimed that the United Arab Emirates may already have a reserve.
All bullish claims revived the bullish sentiment amidst the FUD. Onchain data sheds more light on how the market responded.
Massive Whale Inflow
Investors in the United States were some of the top gainers from the massive bullish fundamentals. Data from CryptoQuant shows that traders from this region maintained the buying pressure and are the main drivers of the current uptrend. They exerted more effort at buying during the current session than the previous day. The Coinbase premium is green, hinting at whales’ participation as well.
Exchange reserves are declining due to the ongoing buying trend. It is at its lowest in the last seven days as the bulls sustain the volume amidst small failure. Traders are withdrawing more assets from these trading platforms and moving to cold storage as they anticipate further price increases.
The funds premium is positive as investors pump notable revenue into exchange-traded funds. Data from SosoValue shows that this instrument saw a net flow of $428 million on Friday. The chart also shows that the asset has been on this bullish pattern since Nov. 27.
Nonetheless, the unrealized profit grows as Bitcoin attains a fresh ATH. This latest development increases fears of an impending correction.
Bitcoin Eyes $110k
A previous analysis pointed to US traders as the trigger for the next breakout and hinted at a surge to $110k. This played out as Bitcoin edged closer to $108k, barely $3k shy of the highlighted mark. Previous price movements suggest this may be the case, as the asset added an average of $2,500 from its previous high.
However, MicroStrategy announced the addition of another 15k BTC to its reserve. The announcement may spark a similar reaction as last week. This may be the case as the apex coin trades at $106k, a few thousand away from its peak.
Nonetheless, the moving average convergence divergence suggests that the asset will bounce back regardless of the corrections. Bitcoin is having a bullish convergence, hinting at further upticks. This may signify a possible surge to $120k this December.
