Bitcoin (BTC) concluded a volatile week hovering near $98,000 after briefly surpassing the $100,000 milestone, followed by a significant correction. Institutional demand and whale accumulation remain strong, supporting bullish momentum. However, traders should exercise caution due to Mt. Gox fund movements, government transfers, and profit-taking by holders.
Market Overview: Volatility at the $100K Threshold
- Bitcoin peaked at $104,088 on Thursday before sharply correcting to $90,500, later stabilizing above $96,900.
- Strong institutional inflows ($2.4B into spot ETFs) and whale activity (e.g., MARA Holdings adding 5,000 BTC) underpin the rally.
- Bearish signals include profit-taking (Santiment’s NPL indicator) and potential sell pressure from Mt. Gox/US government wallet movements.
Bullish Catalysts Driving Bitcoin
1. Institutional Demand Surge
- Spot Bitcoin ETFs recorded $2.4B inflows this week, reversing prior outflows.
- Mining firm MARA increased holdings to 22,000 BTC ($2.17B), signaling corporate adoption.
2. Key Supportive Events
- Michael Saylor’s Advocacy: Urged Microsoft to add BTC to its reserves.
- Pro-Crypto SEC Leadership: Paul Atkins’ nomination boosted market optimism.
- Putin’s Endorsement: Russian president acknowledged Bitcoin’s inevitability.
Bearish Risks to Monitor
1. Profit-Taking Signals
- Santiment’s NPL metric spiked, mirroring the November 21 peak that preceded a 7% drop.
2. Potential Sell Pressure
- Mt. Gox: Transferred 24,052 BTC ($2.43B) to new wallets.
- US Government: Moved 10,000 BTC ($962M) from Silk Road seizures to Coinbase Prime.
Technical Analysis: Key Levels to Watch
- Resistance: $104,088 (Thursday’s high). Breakthrough could target $119,510 (141.4% Fib extension).
- Support: $90,000. A close below may test $85,000.
- RSI Divergence: Suggests short-term correction risk.
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FAQs
1. Why did Bitcoin drop after hitting $100K?
- Profit-taking by holders and leveraged long liquidations triggered the correction.
2. What’s driving institutional Bitcoin demand?
- Spot ETF inflows and firms like MARA/MicroStrategy adding BTC to balance sheets.
3. Could Mt. Gox transfers crash the market?
- Large movements create uncertainty, but sustained demand may absorb selling pressure.
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Conclusion
Bitcoin’s path to $120K hinges on institutional inflows outweighing sell-side risks. Traders should watch $90K support and RSI divergence for near-term direction.
Disclaimer: This content is for informational purposes only and does not constitute financial advice. Cryptocurrency trading involves high risk.
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