Bitcoin Price Supported By All-Stablecoins Cash Inflow – Data Reveals Strong Correlation
December 03 2024 - 1:30PM
NEWSBTC
Bitcoin has entered a period of calm after a turbulent decline from
$99,000 to $90,000 over just three days. Currently trading above
$95,000, the leading cryptocurrency holds a pivotal level that will
likely dictate its next move. This key zone will determine whether
Bitcoin regains upward momentum or seeks lower-level liquidity to
establish stronger support. Related Reading: XRP Reaches 6-Year
High – Whales And STH Accumulate Together Despite the recent
volatility, market participants remain optimistic, as on-chain data
provides fresh insights. According to CryptoQuant, a notable uptick
in stablecoin transfer volumes has coincided with Bitcoin’s price
action. This metric often signals increased purchasing power
entering the market, a potential precursor to renewed buying
interest in Bitcoin. As Bitcoin consolidates above $95,000, traders
and investors closely monitor its ability to reclaim psychological
resistance at $100,000. Conversely, losing support could push BTC
to retest lower levels near $90,000 or even deeper liquidity
zones. Bitcoin And Stablecoins: What They Have In Common?
Bitcoin has achieved a remarkable milestone, staying less than 1%
away from the coveted $100,000 mark, driven by a wave of
institutional and retail buying. This historical rally reflects a
growing global demand, with investors from various countries
utilizing stablecoins to purchase BTC. Stablecoins have emerged as
the preferred bridge, enabling seamless transactions across borders
and currencies. According to CryptoQuant analyst Axel Adler, the
recent surge in stablecoin transfer volumes coincided with
Bitcoin’s price ascent. This trend highlights stablecoins’
significant role in providing liquidity and driving market
momentum. Cash inflows through stablecoins create robust support
for Bitcoin’s price, allowing it to maintain upward pressure even
as it nears critical psychological levels. The correlation between
stablecoin activity and Bitcoin price action offers valuable
insights into market dynamics. Increased stablecoin transfers often
signal heightened demand for Bitcoin, providing a reliable
indicator of potential price movements. This interplay is
particularly relevant in identifying periods of high buying
pressure, as stablecoins facilitate quick and efficient market
participation. Related Reading: Dogecoin Ready To Hit $1 – Price
Struggles To Break Above Major Resistance As Bitcoin approaches the
$100,000 milestone, the continued influx of stablecoin-driven
liquidity underscores the asset’s global appeal and resilience.
Whether this momentum leads to a breakout above $100,000 or a
period of consolidation, the role of stablecoins in fueling demand
will remain pivotal in shaping Bitcoin’s price trajectory. BTC
Price Nears Critical Zone Bitcoin currently holds above the crucial
$95,000 level, a price that will play a decisive role in its
short-term trajectory. This level acts as a psychological and
technical support zone that could propel BTC toward the
long-anticipated $100,000 milestone this week or delay the
breakthrough until next year. For Bitcoin to breach $100K, the
$95,000 level must hold for several days, allowing sufficient time
to fuel demand and attract fresh liquidity. Sustained buying
pressure around this range will likely enable BTC to break above
the key psychological barrier, continuing its historic rally.
However, the bullish momentum faces risks. A failure to hold the
$95,000 level would expose BTC to a retest of $92,000, another
critical support. Losing both levels could trigger a significant
correction, sending Bitcoin to lower demand zones around $85,000 or
sub-$ sub-$80,000. This move would sharply reverse its recent
rally, shaking market confidence. Related Reading: Cardano
Transactions Rise To Multi-Year Highs – Metrics Support Bullish
Outlook The coming days will be pivotal as traders watch for
sustained support above $95,000. Bitcoin’s ascent to $100,000 could
soon materialize if the bulls defend this level effectively.
Otherwise, the market might brace for a deeper retracement before
regaining its upward momentum. Featured image from Dall-E, chart
from TradingView
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