Bitcoin’s price correction extended into a second day as BTC briefly slipped below $93,600 on Dec. 3, but data suggests that an assortment of market participants are keen to buy the dips.
While some traders may be revising their short-term targets and choosing to take profits, Bitcoin’s (BTC) price appears to be consolidating by taking a breather after November’s stellar 37% gain.
After an unprecedented parabolic $26,000 gain in November that neared what some traders deem a psychological hurdle of the $100,000 mark, a period of consolidation when BTC can build some market structure in terms of a defined range with clear support and resistance levels would be a healthy next step.
BTC/USDT, 4-hour chart. Source: TRDR.io / Cointelegraph
During the US session on Dec. 3, Bitcoin’s intra-day low appeared to have been exacerbated by South Korean President Yoon Suk Yeol briefly declaring martial law before retracting the decree hours later. On Korean exchange Upbit, Bitcoin dropped under $65,000 due to a lack of liquidity, while it traded close to $95,000 on Binance.
BTC on Upbit was priced under $65k, while we saw almost $95k on Binance— $30k difference between Korea and the rest of the world. That was absolutely crazy. We observed big sell pressure, with almost $7mm more in sell orders than buy orders. The next plot is the most important.
— ltrd (@ltrd_) December 3, 2024
Beyond that brief blow to investor sentiment, multiple developments that the market deemed bullish either occurred or were pending. On Dec. 2, MicroStrategy announced purchasing 15,400 Bitcoin for $1.5 billion at $95,976 per BTC.
MicroStrategy has acquired 15,400 BTC for ~$1.5 billion at ~$95,976 per #bitcoin and has achieved BTC Yield of 38.7% QTD and 63.3% YTD. As of 12/2/2024, we hodl 402,100 $BTC acquired for ~$23.4 billion at ~$58,263 per bitcoin. $MSTR https://t.co/K3TK4msGp0
— Michael Saylor⚡️ (@saylor) December 2, 2024
On the same day, listed Bitcoin miner Mara announced an $800 million proposed private offering of convertible notes, the proceeds of which would be used to purchase more BTC.
Another potentially bullish development for Bitcoin price will take place on Dec. 10, when Microsoft shareholders vote on whether to add BTC to the company’s balance sheet.
Related: Microsoft’s Bitcoin dilemma: Ride $5T BTC wave or avoid risk
Also, there are rumors that news may emerge about a possible United States strategic Bitcoin reserve, as well as an announcement from a Middle East country that is building a similar reserve.
A factor that has become easy to take for granted is a consistently robust appetite from the spot Bitcoin ETFs, where inflows have remained strong.
Data from SoSoValue shows the spot ETFs registering a $3.38 billion inflow from Nov. 21 to Nov. 25, and barring a $138 million outflow last week, the month of December started with three consecutive days of inflows above the $100 million level.
Spot Bitcoin ETF netflow. Source: SoSoValue
Related: Crypto markets claw back as South Korea reverses martial law
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.