As the year 2024 comes to a close, Bitcoin (BTC) is trading in a critical area that could determine the fate of its latest bull run. Despite a lack of overall momentum during the Christmas period, signs of short-term change are emerging.
Short-Term Volatility Expected
According to popular trader Skew, volatility is “brewing” in short timeframes, with the weekly open playing a crucial role in determining short-term price action. Fellow trader CrypNuevo highlighted areas of high liquidations that could dictate further dips, with these currently around the $92,000 mark.
Stagflation Concerns Loom Large
The macroeconomic event of the week is the release of initial jobless claims, but concerns about “stagflation” – a combination of rising inflation and unemployment – are the real elephant in the room for risk-asset traders. Trading resource The Kobeissi Letter warned that stagflation could become “the theme of 2025,” with 55% of high net worth investors expecting it to occur.
Seller Exhaustion Begins
Despite the recent 15% dip in Bitcoin’s price, on-chain analytics platform Glassnode suggests that seller exhaustion is beginning to set in. The Point-In-Time Short-Term Holder (STH) Profit/Loss Ratio is at its breakeven point, indicating that short-term holders may be reaching a point of exhaustion.
Whales Remain Bullish
Research firm Santiment 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. If whales continue to accumulate, the results could be a final big unexpected pump in 2024.
Binance Stablecoin Reserves Point to Market Health
On-chain analytics platform CryptoQuant revealed that Binance’s stablecoin reserves have recently accumulated record levels, suggesting that investors remain actively positioned in the market and potentially maintaining a strong buying pressure.
Source: Cointelegraph.com
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