Bitcoin continues to fascinate, surprise, defy expectations, and test the psychological limits of the market. A stone's throw from the symbolic threshold of $100,000, the leading crypto records a record weekly close, which consolidates its position in a context of increased volatility. This figure, more than ever at the center of discussions, raises questions: is it a simple milestone or a real market catalyst?
The figures of a historic week
After volatility marked by a brief but spectacular drop to $95,800 on Sunday, November 24, 2024, bitcoin closed the week at a record high of $98,000. This movement triggered massive liquidations, which totaled $500 million, in a market characterized by low liquidity. The $98,500 threshold is a key point to reconquer to consolidate the uptrend. This observation provides more information on the importance of liquidity movements in the evolution of the price of bitcoin.
Meanwhile, data shows that CME Group bitcoin futures indicate liquidity concentration just below $100,000. Some experts, like Aksel Kibar, Certified Market Technician and CEO of Tech Charts LLC, downplay the importance of this threshold and call it “just a collection of numbers on a screen.” It points to higher technical levels, such as $140,000. These elements suggest that, despite the attention given to the $100,000 mark, more ambitious goals could already structure investors' strategies.
Record Profits and Market Implications
Long-term holders, often referred to as “diamond hands,” were particularly active this week. Thus, CryptoQuant data reveals profits made that reach a historic peak of $443 million in a single day. Additionally, “unrealized profit levels remain at 57%, reflecting a strong appetite for profit-taking,” noted Maartunn, analyst at CryptoQuant. Furthermore, short-term holders also appear to have benefited from this dynamic, which could signal a slowing of the surge.
This selling frenzy is tempered by the massive influx of capital into Bitcoin ETFs in the United States, with net inflows of $7 billion in November. Indeed, institutional movements, which have just recorded a record week, offer a significant counterbalance to selling pressures. Glassnode points out that “ETFs have the potential to neutralize the effects of profit-taking, and thus create a solid basis for a recovery beyond $100,000.”
As Bitcoin approaches a major psychological milestone, the market oscillates between optimism and caution. Institutional flows and record profits made by long-term holders demonstrate a market in transformation. If a correction could strengthen the market structure, crossing the $100,000 mark, accompanied by a possible continuation towards $140,000, would mark a historic milestone. In a context of increased volatility and macroeconomic uncertainty, the coming days could well redefine the dynamics of this already extraordinary market.
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