DAY 3 - Daily BTC Update
2024-12-23
Category: None

Bitcoin must hold the key support level of $92,300 to maintain its bullish outlook and validate the Dragonfly Doji pattern on the daily timeframe. There is conflicting data, with momentum indicating increasing selling pressure, reflected in the formation of lower highs on the daily chart, but the STOCH RSI has bottomed.



Bitcoin’s hash rate—the computational power used to mine and process transactions—has risen by 5.48% to 830.78 EH/s, showcasing stronger network security and processing power. Despite this, mining difficulty remains unchanged at 108.52 T, suggesting that while miners are contributing more power, the effort required to mine a block has not yet been adjusted.



The Crypto Greed and Fear Index currently stands at 70, indicating market greed. While this sentiment suggests confidence, it could also signal caution as investors may pull back from further price increases after the recent decline. The total cryptocurrency market cap has dropped by approximately 2.9%, with Bitcoin dominance slightly decreasing to 55.1%, reflecting minor shifts in market dynamics.

In trading, long liquidations have surged, with over $38 million in Bitcoin long positions liquidated within four hours. This sharp move signals a potential bearish turn, driven by traders taking profits or reacting to external pressures. Despite this, declining trading volume suggests fewer sellers in the market, which could hint at stabilisation or a potential reversal.

On-chain data provides a more optimistic perspective. Whale accumulation has increased, and exchange liquidity inventory ratios have declined, signalling that large holders are likely accumulating Bitcoin for longer-term gains or anticipating a price recovery. Moreover, exchange reserves are decreasing, reducing the immediate supply of Bitcoin available for sale. This dynamic supports a potential price rebound if current trends persist.

The past 24 hours have been volatile, with Bitcoin leaning bearish in the short term. However, the underlying on-chain metrics—such as whale activity and reduced exchange reserves—suggest that bullish investors still have hope. A buy-the-dip opportunity may arise if Bitcoin forms a higher low in the coming sessions, potentially paving the way for a recovery.

I am still Buying the Dips :)

PS there were a few more images on the in group update - but not allowed under Trading View Rules - Sorry :( 