Key Points
- Bitcoin (BTC) is in a consolidation phase, with indicators suggesting a potential market bottom and a rally towards $100k.
- Whales are accumulating BTC, reflecting confidence in the cryptocurrency.
After a strong performance in November, Bitcoin (BTC) is currently in a consolidation phase. A key BTC metric has indicated a potential shift in market sentiment, which could potentially push BTC towards the $100k mark.
A Potential Market Bottom for Bitcoin?
BTC experienced a significant correction after reaching $99k last week, falling to $91k. However, the cryptocurrency has since been hovering around the $96k consolidation zone. At the time of writing, BTC is trading at $96,431.49, with a market capitalization of over $1.9 trillion. This comes amid speculation that BTC is targeting $100k.
Recent analysis from Glassnode suggests that this could be possible. Their Seller Exhaustion Composite for Bitcoin indicates a positive shift in market sentiment on a weekly timeframe, hinting that Bitcoin may be at its market bottom.
Whale Activity and BTC’s Potential Rally
In addition to these indicators, BTC whales have been accumulating the cryptocurrency. According to an analysis by CryptoQuant, nearly 16,000 BTC has entered whale reserves, corresponding to almost $1.5 billion in on-chain accumulation. This ‘buy the dip’ strategy reflects the confidence of major players in Bitcoin.
Other metrics supporting a move towards $100k include Bitcoin’s Pi Cycle top indicator. If the indicator is accurate, BTC could potentially reach a market top of over $123k. However, if BTC’s current price is not its bottom, the cryptocurrency could drop to $68k, as suggested by the same indicator.
Bitcoin’s Relative Strength Index (RSI) has also dropped to 66 after reaching 82, indicating there is more room for buying. This could provide the necessary push for BTC to break above resistance levels in the coming days. However, it will be crucial for BTC to breach the $99k resistance to hit a triple-digit value.
