Key Points
- Bitcoin’s ETFs and large holders maintain positive flows, hinting at a potential bullish move.
- Despite weak bullish demand, investors remain cautiously optimistic about Bitcoin’s prospects.
Bitcoin’s recent activity suggests a potential bullish move, as ETFs and large holders continue to show positive flows.
The cryptocurrency market has been experiencing a shift away from greed, but selling pressure remains relatively low. This has resulted in Bitcoin [BTC] showing a lot of sideways activity recently.
Bitcoin’s Uncertain Direction
Traders are currently uncertain about whether Bitcoin will experience a major retracement or if it could push above $100,000 before the end of the year. This uncertainty is reflected in Bitcoin’s recent price fluctuations, with the cryptocurrency experiencing a 3.44% dip in the last two days.
However, despite this slight dip, Bitcoin ETFs have started the week with net positive flows, recording inflows of $353.6 million on Monday. This is slightly higher than the positive flows recorded on Friday ($320 million).
Indications of Potential Buying Pressure
Data from IntoTheBlock shows that large holder flows increased significantly between the 1st and 2nd of December, suggesting a potential build-up of buying pressure. However, these inflows were not matched by a corresponding increase in price.
Bitcoin’s price action has instead been in line with the declining market sentiment, as reflected in the fear and greed index dipping from 80 to 76 in the last 24 hours. This indicates a decrease in bullish optimism.
Open interest in Bitcoin has also declined, signaling a decrease in demand for the cryptocurrency in the derivatives segment. Despite this, open interest remains largely positive, suggesting that investors are not in a hurry to sell.
Investors seem to be cautiously optimistic about Bitcoin’s bullish prospects, but this does not guarantee that they will remain so for long. An extended period of weak bullish demand may lead to a buildup of bearish expectations, especially as the price shifts towards more FUD.
For more detailed predictions on Bitcoin’s price, you can read Bitcoin’s [BTC] Price Prediction 2024–2025 here.