The relative advantage of bullish bitcoin orders has weakened, allowing sellers to gain a more dominant position. This conclusion was reached by FalconX, according to CoinDesk.
This indicates that the upward momentum, which drove prices to around $100,000 following the US elections, is not supported by new buying interest.
The smoothed 3 DMA measure of supply and demand imbalance within 1% of the average has approached levels seen only three times since 2022.
According to analysts, minor negative news could lead to a significant correction.
“While this does not threaten the medium-term rally, the struggle to break above the $100,000 level will be intense,” specialists explained.
FalconX warned that a potential correction or possible breakthrough above $100,000 will be swift, as overall market depth or liquidity has decreased amid the rally, despite increased trading volumes.
Growth Potential
Bitwise founder and CEO Hunter Horsley expressed confidence that bitcoin’s growth potential is not exhausted.
#Bitwise CEO Hunter Horsley says, “It feels like Bitcoin has been around forever now… Investors are engaging now. They view it as finally having matured enough, having the regulatory clarity they need.” pic.twitter.com/0KaQaN1jpm
— cryptothedoggy (@cryptothedoggy) November 23, 2024
In his view, 2024 marks the end of an early chapter and the beginning of the next—transitioning to the mainstream. Investors are starting to see cryptocurrencies as an asset class that has matured enough for regulatory transparency. They no longer see obstacles following Donald Trump’s victory.
Horsley linked the current fluctuations in the digital gold’s rate to profit-taking by retail investors and hedging by fund managers.
ETF
On November 22, inflows into spot bitcoin ETFs amounted to $490.35 million, according to SoSoValue. The positive trend continued for the fifth consecutive day.
The cumulative inflow since the approval of BTC-ETFs in January has increased to $30.8 billion. The volume of assets under management has surged to $107.5 billion.
On November 24, the price of the first cryptocurrency fell below $96,000. This was preceded by a spike in daily realized profits to a record $443 million, according to CryptoQuant.
Earlier, Bernstein identified catalysts for bitcoin’s rise to $200,000.