Ahead of US President-elect Donald Trump’s second inauguration in January 2024. The price of bitcoin, BTC$94 758, Maintained its modest bullish momentum. Crypto-leveraged market As of this writing. The flagship coin has fallen more than 6% over the last seven days, teasing below $93K.
Crypto Liquidated Amid Bearish Trend
Only $313 million, mostly from long traders. Liquidated from the crypto-leveraged market despite the increasing bearish volatility. Due to the desire for a possible recovery. Market intelligence platform Sanitment concluded that. The cryptocurrency market is currently experiencing trade paralysis. According to the market intelligence platform Santiment.
This is an indication of trading paralysis, in which hesitancy. Is brought on by both hunger for possible gains and fear of additional losses. Due to uncertainty or the expectation of a sharp market reversal. Traders are hesitant to take decisive action. Which is reflected in the current status of the cryptocurrency market. Unpredictable movements and continuous market instability may be exacerbated by this stagnation.
Whale Activity Declines as Bitcoin Weakens
Whale investors have shown little interest in Bitcoin as retail traders have fled the volatile cryptocurrency market. With about 667,100 active addresses, Bitcoin’s network activity has decreased to its lowest level since November 2024, per on-chain data research. Over the previous month, the number of large transactions on the Bitcoin network has decreased from 33,450 to 16,180, a 51% decrease.
When the US spot Bitcoin ETFs had a net cash outflow of $149 million last Friday, driven by BlackRock’s IBIT, which has been a key buyer of Bitcoins, Crypto-leveraged market it was clear that whale activity had significantly decreased. Bearish cryptocurrency views have been sparked by concerns that President-elect Donald Trump’s inauguration would become a sell-the-news event. Additionally, cryptocurrency speculators have started making predictions about the.
Bitcoin Head and Shoulders Pattern
According to a well-seasoned trader Peter Brandt, Bitcoin price has been creating a head and shoulders (H&S) pattern after hitting a heightened resistance level of roughly $100K. In addition, during the last few weeks, a sliding divergence has been emerging in the daily Relative Strength Index (RSI). However, Brandt contended that to validate the reversal pattern.
The price of Bitcoin must continuously drop below the H&S pattern’s neckline, which is about $92K. According to Brandt, the price of Bitcoin might go as low as $75K to $77.5K if the H&S pattern is confirmed. The trader also pointed out that the price of Bitcoin might be building a bear trap, with a recovery probably occurring at $92K. Brandt thinks that the price of Bitcoin will be in a strong position to rise in such a scenario.
Summary
Bitcoin has seen some bullish momentum as January 2024, the second inauguration of US President-elect Donald Trump, draws near, but it has recently fallen more than, hanging just below. Crypto-leveraged market Million was liquidated in the crypto-leveraged market, indicating a state of trade paralysis despite rising negative volatility. Fear of losses and uncertainty about a possible market recovery are the main reasons why traders are apprehensive
With Bitcoin’s network traffic hitting its lowest point since November 2024, whale activity has also drastically decreased. This decline in interest is further evidenced by a recent $149 million withdrawal from Bitcoin ETFs.In Bitcoin’s price movement, trader Peter Brandt has seen a likely head and shoulders pattern that, if verified, may indicate a decline. But Brandt also pointed out the potential.
