TLDR
- Bitcoin recovered from a $94,500 dip and surged past $100,000 after US CPI data aligned with market expectations, with analysts predicting potential rises to $275,000 based on cup and handle pattern analysis
- Heavy whale accumulation occurred during consolidation, with 342 new wallets holding over 100 BTC created during the recent price drop from $104,000 to $90,000
- Spot Bitcoin ETF inflows remain strong, with BlackRock’s IBIT reaching over $35 billion in net inflows since launch
- Analysts predict a 96-97% chance of a 25 basis point rate cut at next week’s FOMC meeting, potentially catalyzing further price movement
- Technical analysis suggests Bitcoin broke out of its $94,500-$98,000 trading range, with altcoins showing stronger relative performance
Bitcoin has pushed past the $100,000 mark, recovering swiftly from yesterday’s dip to $94,500. The rebound comes as new data reveals substantial whale accumulation and continued strong inflows into spot Bitcoin ETFs, painting a picture of robust institutional and high-net-worth investor interest.
The latest market movements follow the release of US Consumer Price Index (CPI) data, which aligned with market expectations. This development has strengthened predictions of a potential Federal Reserve rate cut at next week’s Federal Open Market Committee (FOMC) meeting, with analysts estimating a 96-97% probability of a 25 basis point reduction.
During the recent consolidation period around $96,000, large investors demonstrated strong buying activity. Data from blockchain analytics reveals that 342 new wallets holding more than 100 BTC were created as Bitcoin’s price fluctuated between $104,000 and $90,000, indicating substantial accumulation by wealthy investors during the price dip.
The institutional adoption of Bitcoin continues to expand through spot ETF products. BlackRock’s IBIT has reached a new milestone, exceeding $35 billion in net inflows since its launch. The ETF sector has maintained positive inflows for nine consecutive trading sessions, highlighting sustained institutional interest in the asset class.
Technical analysis from crypto analyst Ali Martinez identifies a cup and handle pattern forming on Bitcoin’s weekly chart. This traditional bullish formation suggests a potential price target of $275,000, though Martinez advises traders to maintain caution and avoid excessive leverage.
Buy the dip, and don’t overleverage! #Bitcoin $BTC will reach $275,000, based on this cup and handle pattern! pic.twitter.com/cqf99cBtmB
— Ali (@ali_charts) December 10, 2024
Market data from Coinglass shows over $478 million worth of contracts were liquidated in the past 24 hours during the recent price volatility. Interestingly, altcoin positions experienced higher liquidation volumes compared to Bitcoin positions, suggesting more stable holding patterns for BTC.
The cryptocurrency’s price recovery appears supported by declining exchange reserves, which have reached multi-year lows. This trend typically indicates reduced selling pressure as fewer coins are available for immediate sale on exchanges.
Corporate adoption of Bitcoin continues to expand, with Canadian video-sharing platform Rumble becoming the latest company to announce a Bitcoin treasury strategy. This follows a broader trend of companies exploring cryptocurrency as a treasury asset, despite Microsoft shareholders recently rejecting a proposal to allocate 1% of the company’s assets to Bitcoin.
Former investment banker Anthony Scaramucci has suggested that China might establish its own Bitcoin reserve if the United States proceeds with strategic Bitcoin reserve plans. Such national adoption could further impact the supply-demand dynamics of the cryptocurrency.
The altcoin market has shown even stronger performance during this recovery period. Ethereum has registered a 7% increase, trading near $3,920, while other major cryptocurrencies like XRP, BNB, SOL, and DOGE have posted gains between 4-5%.
Analysis from 10x Research notes that Bitcoin’s price often rallies after declining ahead of inflation reports, particularly when the data meets market expectations and calms inflation concerns. The firm expects measured market movements through year-end as many investors typically close their positions following the FOMC meeting.
Looking at short-term price action, Bitcoin has broken out of its previous trading range between $94,500 and $98,000. The movement above $100,000 represents a clear break from this consolidation pattern, though traders remain watchful of key support levels around $90,000.
The overall market structure suggests continued strength, with Bitcoin maintaining prices above previous resistance levels. The combination of institutional inflow through ETFs, whale accumulation, and broader market adoption provides multiple support factors for current price levels.
Trading volume has remained robust, with daily volumes consistently supporting price action above $100,000. The market currently shows a healthy balance between spot and derivatives trading, indicating sustainable price discovery.
At press time, Bitcoin trades at $100,453, representing a 4.1% increase over the past 24 hours.
