Bitcoin may close the current day with gains exceeding 2%. The latest increase came from a massive increase in ion trading volume. Data from Coinmarketcap shows a slight rise in trading volume over the last 24 hours.
Price action suggests that the bulls are edging. The coin registered notable price increases after starting the day at $66,602. It shot up and attempted a return to $69k but failed due to massive rejections at $68,800.
The latest surge comes barely 24 hours after the apex coin’s massive decline. It started the previous intraday session at $67,382 but saw considerable spikes in selling pressure, resulting in a significant dip. It lost the $66k support but rebounded at $65k. BTC ended the day at $66,600 following a slight recovery.
While many are taking profit at the time of writing, as signified by the wick, others wonder why there is such a sudden sharp rise.
Potential Rate Cut
New data from the United States Labor Department is spreading optimism among traders and market observers. One such is the drop in the number of those applying for new unemployment aid, which dropped by over 15,000 last week. Citizens receiving benefits after their first week of aid also surged by 28,000 as employment increased.
These trends preceded the previous rate, as the job market is one of the leading indicators in measuring possible economic growth. The optimism of a potential rate cut before the end of the year sparked several rallies across several sectors, including the crypto market.
Traditional stocks are seeing a sharp rise in value as bullish sentiment grows. For example, Tesla rose by over 21% following its CEO’s announcement of a possible surge in the company’s revenue. He predicts a 30% hike in 2025.
Other tech companies, like Nexatin Technology and Alpha Technology Group Limited, gained over 52% in the last 24 hours. Nonetheless, Monopar Therapeutics Inc. is the top gainer during this period, up over 600%.
Coinbase Premium is Negative
Several onchain metrics point to the bulls getting exhausted. For example, Bitcoin sees little or no funding from traders in the US amidst the latest surge. The Coinbase premium is negative due to this. However, the Asian market is seeing a similar sentiment as Korea premium is negative.
Exchanges have seen minimal Bitcoin inflows over the past 24 hours, and the same trend has been observed over the last seven days. Due to these low inflows, the netlow is negative.
While this may suggest bullish momentum, other indicators point to potential declines. One such metric is the unrealized profit margin, with many wallets showing significant gains since the recent uptrend. This suggests some holders might start selling, potentially leading to further declines.
Large holders are also moving their assets, which could trigger panic among retail investors, as it might be seen as preparation for liquidation. The aSOPR data indicates that both large and small holders are selling.
Miners had paused their selling last week, which contributed to the uptrend. However, they have resumed bearish activity, and if buyers don’t absorb the increased supply, it could lead to downward pressure in the coming days.
Bitcoin Will See Further Corrections
Bitcoin’s one-day chart shows some indicators printing sell signals. One such indicator is the moving average convergence divergence. A few days ago, the 12-day EMA halted its uptrend and started declining. It almost completed the bearish convergence. However, recent price increases stopped it. Nonetheless, the histogram associated with it shows decreasing bars.
The average direction index is declining despite the current price increase. This indicates growing negative sentiment in the long term, and prices may succumb to it.
Nonetheless, other indicators, such as the relative strength index and momentum indicator, are bullish due to the ongoing trend.
