Bitcoin Sharp Rebound Above $95K: Stop Hunting or Trend Reversal?
Bitcoin Sharp Rebound Above $95K: Stop Hunting or Trend Reversal? Bitcoin (BTC) witnessed a sharp decline below $90,000 yesterday, sparking concerns about its near-term stability. However, the cryptocurrency has since rebounded, trading back above $96,000 at the time of writing. This rapid recovery has drawn the attention of market analysts who are examining the underlying trends driving Bitcoin’s price movements. Is Bitcoin’s Surge Above $96k A Stop Hunt? A CryptoQuant contributor, Mignolet, shared an analysis highlighting the recent price dynamics. According to the analyst, the recent drop in BTC to $89,000 and the current recovery was triggered by the breaking of a key short-term support level. Mignolet revealed that this pattern, referred to as “stop hunting,” occurs when price movements break support levels temporarily before recovering. Despite the recovery, Mignolet emphasizes that a true trend reversal would require stronger involvement from key market participants. Mignolet’s analysis points to significant selling activity among whale entities, as observed in Coinbase Premium Gap (CPG) data. Typically, buying whales step in to absorb such dips, creating notable market volatility. Coinbase Premium Gap (CPG). | Source: CryptoQuantHowever, this time, such activity was absent, raising questions about the sustainability of the ongoing rebound. Additionally, Binance’s market-buy ratio data suggests that large-scale buyers on the exchange have not capitalized on the recent price movement, indicating cautious sentiment among key players. Further evidence disclosed by Mignolet comes from the exchange-traded fund (ETF) daily inflow and outflow data, which is yet to confirm any major shifts in market dynamics. While the daily candle pattern suggests a meaningful move, the lack of participation from whales could limit Bitcoin’s ability to sustain a long-term reversal. Mignolet also warned that market sentiment might shift too quickly to optimism without clear supporting data. The analyst noted: While the candle pattern signifies a meaningful move, the major players are not capitalizing on the opportunity. What concerns me more is that many people’s sentiment may quickly shift to a sense of relief too soon. Bitcoin Market Performance After seeing a notable plunge in price yesterday dropping below $90,000 and triggering a total liquidation of over $300 million in the crypto market, Bitcoin is finally seeing a noticeable reversal in its bearish trend. BTC price is moving sideways on the 2-hour chart. Source: BTC/USDT on TradingView.comParticularly, over the past day, Bitcoin has increased by 5.6% bringing its price to trade at $96,351, at the time of writing. However, despite this increase, the asset is still roughly a 10.8% decrease away from its peak above $108,000 recorded last month. While Mignolet’s analysis suggested that Bitcoin bearishness might not be over yet, it is worth noting that the asset’s current recovery coincides with reduced selling activity from long-term holders. In a separate analysis, CryptoQuant contributor Darkfost revealed that the net position change of long-term holders (LTHs) over the past 30 days remains negative but shows signs of improvement. From a low of -827,000 BTC on December 5, the figure has improved to -246,000 BTC. Bitcoin long-term holders’ (LTHs) net position change. | Source: CryptoQuantThis reduction in selling pressure suggests that LTHs are less inclined to sell at current price levels as Bitcoin’s price declines. However, Darkfost noted that for bullish momentum to regain strength, LTHs would need to shift toward accumulation rather than reducing sales. Featured image created with DALL-E, Chart from TradingView Samuel Edyme Meet Samuel Edyme, Nickname - HIM-buktu. A web3 content writer, journalist, and aspiring trader, Edyme is as versatile as they come. With a knack for words and a nose for trends, he has penned pieces for numerous industry player, including AMBCrypto, Blockchain.News, and Blockchain Reporter, among others. Edyme’s foray into the crypto universe is nothing short of cinematic. His journey began not with a triumphant investment, but with a scam. Yes, a Ponzi scheme that used crypto as payment roped him in. Rather than retreating, he emerged wiser and more determined, channeling his experience into over three years of insightful market analysis. Before becoming the voice of reason in the crypto space, Edyme was the quintessential crypto degen. He aped into anything that promised a quick buck, anything ape-able, learning the ropes the hard way. These hands-on experience through major market events—like the Terra Luna crash, the wave of bankruptcies in crypto firms, the notorious FTX collapse, and even CZ’s arrest—has honed his keen sense of market dynamics. When he isn’t crafting engaging crypto content, you’ll find Edyme backtesting charts, studying both forex and synthetic indices. His dedication to mastering the art of trading is as relentless as his pursuit of the next big story. Away from his screens, he can be found in the gym, airpods in, working out and listening to his favorite artist, NF. Or maybe he’s catching some Z’s or scrolling through Elon Musk’s very own X platform—(oops, another screen activity, my bad…) Well, being an introvert, Edyme thrives in the digital realm, preferring online interaction over offline encounters—(don’t judge, that’s just how he is built). His determination is quite unwavering to be honest, and he embodies the philosophy of continuous improvement, or “kaizen,” striving to be 1% better every day. His mantras, “God knows best” and “Everything is still on track,” reflect his resilient outlook and how he lives his life. In a nutshell, Samuel Edyme was born efficient, driven by ambition, and perhaps a touch fierce. He’s neither artistic nor unrealistic, and certainly not chauvinistic. Think of him as Bruce Willis in a train wreck—unflappable. Edyme is like trading in your car for a jet—bold. He’s the guy who’d ask his boss for a pay cut just to prove a point—(uhhh…). He is like watching your kid take his first steps. Imagine Bill Gates struggling with rent—okay, maybe that’s a stretch, but you get the idea, yeah. Unbelievable? Yes. Inconceivable? Perhaps. Edyme sees himself as a fairly reasonable guy, albeit a bit stubborn. Normal to you is not to him. He is not the one to take the easy road, and why would he? That’s just not the way he roll. He has these favorite lyrics from NF’s “Clouds” that resonate deeply with him: “What you think's probably unfeasible, I've done already a hundredfold.” PS—Edyme is HIM. HIM-buktu. Him-mulation. Him-Kardashian. Himon and Pumba. He even had his DNA tested, and guess what? He’s 100% Him-alayan. Screw it, he ate the opp. Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.