Bitcoin Surges Past $98K Amid Institutional Buying, but Analysts Warn of Potential Volatility Ahead
Following a week of negative price activity, Bitcoin (BTC) jumped beyond $98,000 in a spectacular turn of events on Christmas Eve, a sign of
Following a week of negative price activity, Bitcoin (BTC) jumped beyond $98,000 in a spectacular turn of events on Christmas Eve, signifying a clear comeback. Driven by notable spot buying pressure and institutional accumulation, BTC/USD gained more than 3% in one day.
Institutional interest rises even with market volatility. Recently purchasing 619.7 Bitcoin for almost $58.9 million, Japanese investment company Metaplanet Inc. shows continuous institutional trust in the asset class.
Bitcoin Market Analysis
On Bitstamp, the most recent surge saw BTC/USD reach local highs of $98,020, which set off about $40 million in short liquidations over 24 hours. Data on trading shows significant order book volume from big spot purchasers, implying institutional demand is strong even with recent market volatility.
As important participants keep their aggressive accumulation approach, the recovery follows. The biggest corporate Bitcoin holder, MicroStrategy, revealed intentions to extend its bold “21/21 Plan” with a fresh shareholder resolution. The corporation aims to greatly raise its permitted share count, therefore perhaps allowing for billion-dollar worth of further Bitcoin transactions. Acquired at an average price of $62,257 each coin, MicroStrategy currently owns around 444,260 BTC.
BTC Technical Indicators and On-Chain Analysis
Technical analysts remain dubious about the longevity of this surge, though. To validate a positive turnaround, popular analyst Rekt Capital notes that Bitcoin must restore formerly lost support levels. After the Federal Reserve’s latest hawkish comments on interest rates, the price action of the bitcoin has been especially erratic.
On-chain data paints a perhaps alarming picture. Recent average Bitcoin transaction size of $306,101, usually suggesting higher selling pressure from whale investors, exceeded two-year high. This statistic together with the present market structure point to additional negative risk.
Bitcoin Price Outlook
Technical analysis indicates Bitcoin has important support at $90,500; should present levels fail to hold, the next major milestone is $88,000. On the plus side, resistance is $99,426 and, should positive momentum return, might move to $108,353.
Market watchers still differ on Bitcoin’s short-term outlook. Although institutional buying offers basic support, as we get close to year-end the mix of macro elements and whale selling activity could bring further volatility.
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