Bitfinex Cites ‘Seller Exhaustion’ as Bitcoin Rebounds to $94K
Key Takeaways
- The popular crypto exchange Bitfinex had signaled the exhaustion of selling pressure surrounding BTC.
- The current rebound has led to a broader debate over the influence of the 4-year halving cycle on the price.
- Bitcoin staged a rebound in the past two days, with the price reaching $94k level.
- According to experts, price movements are more likely to be tied to institutional and macro developments rather than older models following a halving cycle in the upcoming year.
The popular crypto exchange Bitfinex had signaled the exhaustion of selling pressure surrounding BTC. According to the note released by the crypto exchange on Tuesday, a combination of extreme deleveraging, capitulation among short-term holders, and early signs of seller exhaustion has created the conditions for a stabilisation phase and a relief bounce for BTC.
Bitfinex further notes that the crypto market is currently operating with lower leverage exposure. The lesser leverage prevents the massive liquidations similar to those that happened during the October 10 crypto market crash. Around 19 billion leveraged positions were liquidated during the aforementioned crash triggered by the reignition of the geopolitical tensions between the U.S and China.
The impact of the massive wipeout extended to November, with BTC dipping below $90k level and hitting $82k. The current rebound has led to a broader debate over the influence of the 4-year halving cycle on the price, because the current trend reversal is largely driven by the macro and institutional tailwinds. It’s worth noting that December has historically been a weak month for BTC. The following table shows the historical price fluctuations in December. In the past 5 years, the BTC has recorded losses 3 times.
The BTC Price Fluctuations Historical Data
| Year | December Price Fluctuations |
|---|---|
| 2024 | -3.17% |
| 2023 | 12.03% |
| 2022 | -3.74% |
| 2021 | -18.89% |
| 2020 | 47.17% |
| 2019 | -5.06% |
| 2018 | -6.99% |
| 2017 | 39.53% |
| 2016 | 30.22% |
| 2015 | 14.38% |
| 2014 | -14.86% |
The Bitcoin Rebounds to $93k Level Backed by Institutional & Macrotailwinds
Bitcoin staged a rebound in the past two days, with the price reaching $94k level. The BTC is currently trading at around $93k, and the price has edged up by 0.59% in the past 24 hours. The market cap reached $1.86 trillion. But the 24-hour trading volume decreased by over 16%.
The BTC is currently trading above the 10-day Simple Moving Average and Exponential Moving Average. The MACD is showing a bullish crossover, while the 14-day Relative Strength Index (RSI) stands at 50. However, the BTC is trading below the 50-day Simple Moving Average, and volatility remains high at 7.12%. The next most crucial level for the BTC is $94k. A sustained break above that zone will confirm an uptrend.
The current rebound is backed by institutional validation. The Vanguard, the second-largest asset manager in the world, lifted the ban on crypto Exchange Traded Funds (ETFs) on Tuesday, December 2. Additionally, the Bank of America (BofA) has decided to recommend 1% to 4% allocation to crypto for its wealth management clients. Both these events had a bullish impact on the price. Along with institutional validations, the macro environment turned supportive as the Fed officially ended quantitative tightening.
What’s Ahead for BTC?
If the BTC follows the traditional 4-year pattern, 2026 will be a bearish year. Nevertheless, with expanding institutional adoption, the price movements seem to be responding strongly to macro signals. The macro trends overshadowing the traditional 4-year models suggest the crypto market is maturing. As for BTC, according to experts, the price movements are more likely to be tied to institutional and macro developments rather than older models following a halving cycle in the upcoming year.
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Crypto & Blockchain Expert