Significant Milestone in Bitcoin: Noteworthy Developments This Week

Coin Engineer - Bitcoin is struggling to maintain its monthly support, but deeper BTC price metrics provide reassurance for bulls. Bitcoin is trading within a critical price range as the final days of 2024 approach. While monthly support levels are being tested, short-term signals indicate an increase in volatility. Analysts suggest that the BTC price could retrace to the $90,000 level, with a deeper correction potentially occurring in 2025. The transformation of former support levels into new resistances strengthens the technical confirmation of a downturn.

BTC/USD

On the macroeconomic front, U.S. unemployment data is in focus, but stagflation concerns threaten risky assets. High inflation and rising unemployment risks have investors worried about a scenario reminiscent of the 1970s. The Federal Reserve's uncertain stance on interest rates supports this scenario.

Bitcoin Bull Market Correction Declines

Despite the low market volume, active purchases by whales offer hope for positive price movements. Stablecoin reserves on Binance are at $29.7 billion, which helps maintain market confidence. However, stablecoins alone are not expected to support price increases.

In November, CryptoQuant CEO Ki Young Ju stated that high reserves alone would not lead to a rise in BTC prices. He referred to the BTC-stablecoin reserve ratio metric, stating, "Stablecoins alone cannot provide sufficient buying-side liquidity for Bitcoin."

Binance ERC-20 Stablecoin Reserves

The profitability ratios for short-term investors are at a critical turning point, and signs of seller exhaustion are emerging. Despite declining retail interest as the year comes to a close, whales' tendency to accumulate increases the likelihood of an unexpected price surge.