BTC price volatility is returning to six-digit levels due to Coinbase-led Bitcoin buying.
Bitcoin BTC is down $96,495 as of Dec. 21, approaching $100,000 after a “monster” BTC price surge led to a sudden uptrend.
BTC price suddenly recovers from weekend
Data from Cointelegraph Markets Pro and TradingView tracked BTC/USD, up $7,000 in 24 hours.
Some relief finally arrived at the start of the weekend after a drop to a December low of $92,000 led to liquidation of leveraged long positions. Bitstamp hit a high of $99,500, and the lack of institutional trading seemed almost meaningless as bulls tried to reclaim six-figure amounts.
The bounce came as buyers returned to Coinbase, the largest U.S. exchange, which had previously sparked selling pressure.
Popular trader Exitpump summarized in a post on X that “Coinbase is buying heavily off the lows,” and compared it to Binance’s buying.
His colleague Superbro noted that the 50-day SMA (simple moving average) was acting as clean support for BTC/USD.
Trading account Dr. Magic further explained the “fake” breakdown signal on Bitcoin’s Relative Strength Index (RSI). According to the RSI post,
“There’s a reason I’m obsessed with this RSI scam breakdown I’ve been posting for a while because it was happening on every major leg up to the first local high,” he told his followers, using a chart showing the correlation of highest prices. The signal was substantiated.
At the time of writing, the daily RSI is at 52 and is holding above the important midpoint of 50. As reported by Cointelegraph, the RSI typically stays above the “overbought” 70 level for extended periods in Bitcoin bull markets.
Too little, too late for Bitcoin ETF
Bitcoin’s return to nearly $100,000 seemed bittersweet for investors in the US spot Bitcoin ETF. According to data from UK-based investment firm Far Side Investors and other sources, ETFs recorded net outflows of nearly $300 million as of Dec. 20.
The largest of these ETFs, iShares Bitcoin Trust (IBIT), recorded a record high of $72.7 million in net outflows.
On an hourly basis, he looked for possible breakout signals in the form of an inverse head-and-shoulders structure, a classic pattern that indicates short-term and long-term lows.
