Key Points
- Bitcoin’s volatility is increasing as it approaches the $100,000 mark, with a potential pullback to around $87,680.
- The crypto market has seen significant liquidations and a decline in total market cap, despite growing institutional support.
Bitcoin’s price is experiencing increased volatility as it hovers near the $100,000 milestone.
The cryptocurrency has fallen below the significant mark, trading at $99,404, a minor pullback of 0.32% in the last 24 hours.
Impact on the Crypto Market
This intraday pullback of 1.74% in Bitcoin’s value has significantly impacted the total crypto market, leading to a loss of $62.89 billion in valuation.
The total crypto market cap now sits at $3.55 trillion, down from a 24-hour high of $3.62 trillion.
The daily chart of Bitcoin’s price action indicates a bearish reversal from a local resistance line, marking a negative cycle within the rising wedge pattern.
Despite the pullback, Bitcoin’s market cap remains at $1.96 trillion, showing a surge of 2.57% over the past week.
Anticipated Bearish Pullback
The overall sentiment of the rising wedge pattern is bearish as it approaches the bottleneck part, warning of a potential pullback to the next critical support at the center pivot level priced at $87,680.
Therefore, the current price trend suggests a pullback of nearly 12%.
The market has witnessed liquidations of $290.39 million over the past 24 hours amid increased supply pressure.
This includes $217.71 million in long liquidations, reflecting the broader market pullback.
Bitcoin’s open interest remains at $61.5 billion, with top traders maintaining a bullish long/short ratio over Binance and OKExchange.
However, the $41 million liquidation in Bitcoin over the past 24 hours was driven by the $23.32 billion loss in long liquidations.
Institutional Support for Bitcoin
Despite the short-term bearish outlook, growing institutional support is a key driving factor.
As US spot Bitcoin ETFs register a surge in net inflows, the BTC price is expected to increase.
Over the past week, the total Bitcoin spot ETF net inflow peaked at $2.73 billion.
This was the second-largest net inflow two weeks after the $3.38 billion inflows amid the Trump hype.
Historical Performance and Future Predictions
Historical data shows that a positive November often leads to a positive December for Bitcoin.
For instance, in November 2015, when BTC jumped 19.27%, the trend continued with a 13.83% surge in December.
In November 2017, the 53.48% rise resulted in a nearly 39% surge by the end of the year.
In the 2020 BTC halving year, the 42.95% surge in November was followed by a 46.92% rally in December.
Based on this pattern, the 37.29% surge in November suggests an increased likelihood of a strong rally towards the end of 2024.
A similar surge in December could see the BTC price surpass the $120,000 barrier.
