Bitcoin’s price is experiencing increased volatility as it hovers near the lows of its December trading range, with analysts predicting a potential bounce. Despite a lack of overall momentum during the Christmas period, signs of short-term change are emerging as the last two Wall Street trading days of 2024 get underway.
Short-Term Holder Profitability Reaches Turning Point
According to on-chain analytics platform Glassnode, the Point-In-Time Short-Term Holder (STH) Profit/Loss Ratio is at its breakeven point, indicating a potential local bottom in the bull market. This metric, which compares STH supply in profit to that in loss, has historically detected local bottoms in bull markets and local tops in bear markets.
Stagflation Concerns Loom Large in 2025
The macroeconomic event of the week is the release of initial jobless claims, but concerns about “stagflation” – rising inflation with rising unemployment – are the real elephant in the room for risk-asset traders. The Federal Reserve has one month to go until its next meeting on interest rates, and markets continue to price out the likelihood of further rate cuts next year.
Whales Remain Bullish Despite Retail Apathy
Research firm Santiment has flagged whales as a potential source of “green” candles into the new year, citing an absence of overall trading volume and apathy among retail investors. Whales remain keen on adding market exposure, and if this continues, the results could be significant.
Binance Stablecoin Reserves Point to Market Health
On-chain analytics platform CryptoQuant has revealed that Binance’s aggregate stablecoin reserves have hit record highs, suggesting that investors remain actively positioned in the market and potentially maintaining a strong buying pressure. High stablecoin levels among exchanges have traditionally been linked to the crypto market upside.
Bitcoin Price Action
Bitcoin is currently trading around key support levels, with the weekly open playing an important role in short-term price action. Areas of high liquidations could dictate further dips, with these currently around the $92,000 mark. Despite the recent 15% dip, the December BTC price downside remains modest compared to historical behavior in bull market drawdowns.
Source: Cointelegraph.com
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