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- Bitcoin’s rise to $101,000 is fueled by big HODLers taking advantage of the dip.
- A new all-time record could be within reach, setting the stage for an exciting rally.
Bitcoin [BTC] is back at the critical $100,000 level, prompting intense speculation about the next big move. The market is divided: some see the recent rise as a sign of cautious optimism, fueled more by hype than solid fundamentals.
On the other hand, the increasing number of large HODLers indicates a strong one accumulation phase, with many considering the current price as a potential bottom.
This sets the stage for a major breakout as the excitement of the new year builds.
With the stakes higher than ever, can Bitcoin deliver on its promise of hitting a new all-time high by the end of the fourth quarter?
Bitcoin is showing signs of undervaluation
There are a number of important factors at play at the moment. Internally, volume data suggests Bitcoin is moderately undervalued, while the RSI remains neutral.
The MACD lines are close to a bullish crossover and the CMF remains positive.
Externally, both economic and psychological dynamics are lining up, indicating that a ground formation is underway.
Historically, blowouts often follow when the network is undervalued – and right now the NVT ratio confirms this sentiment.
Source: CryptoQuant
With NVT hitting a two-month low, Bitcoin’s price appears to be outpacing network activity. This signals a potential buying opportunity, especially for big HODLers taking advantage of the dip.
But here’s the catch: whales have actively picked up every dip over the past two weeks, effectively preventing any major pullbacks.
However, despite their efforts, price movements have remained lackluster due to the overwhelming influence of high debt levels on the derivatives market.
A confirmed bottom could set the stage for short positions to shrink – but this can only happen if whales and big HODLers continue to drive buying momentum.
A strategy that the bulls should follow for the strong rise of Bitcoin
In the past 24 hours, Bitcoin rose back to the $101,000 mark after a week of sell-side pressure, leading to a massive short position. pinch.
More than $170 million in short positions were liquidated, with the largest order coming from Binance: a whopping $5.31 million in BTC/USDT.
Furthermore, Open Interest (OI) rose nearly 6% to $64 billion as dominant holders bet on the rise of Bitcoin. This rise could be an ideal time for investors to consider jumping on a potential rebound.
Why? A recent correction forced long positions to close, but whales managed to keep the price from falling below $90,000, neutralizing the pressure.
Read Bitcoin [BTC] Price forecast 2024-2025
With major HODLers and institutional players taking notice of Bitcoin’s undervaluation, the stage is set for a wave of shorts to be squeezed out.
If the big players continue to pick up the dips, a new all-time high could be just around the corner, ready to shatter expectations.