Bitcoin [BTC] has exhibited a period of consolidation over the past few days.
This situation is a typical occurrence that contributes to uncertainty among traders, who are contemplating whether a significant pullback is imminent or if Bitcoin could surge beyond $100,000 before December concludes.
There are numerous possibilities leading up to the end of the month, however, the recent movements in Bitcoin might provide valuable clues regarding what to anticipate in the upcoming week.
This week commenced on a bearish note for BTC, as its price dropped to $94,816 at press time, marking a 3.44% decrease over the last two days.
Despite this slight decline, Bitcoin ETFs began the week on a positive note, with inflows reaching $353.6 million on Monday.
Although these figures were below the peak values, they surpassed the positive flows witnessed on Friday which stood at $320 million.
The positive ETF flows were further supported by another significant development, emphasizing a potential accumulation of buying pressure.
Data from IntoTheBlock highlighted an increase in large holder flows from 102.4 BTC to 4,670 BTC between December 1st and 2nd, following a substantial drop from November 28th.
In contrast, large holder outflows rose from 560 BTC on December 1st to 1,620 BTC on December 2nd, which was less than half of the inflows recorded during the same period.
Could Bitcoin Witness a Surge in Demand Leading to a Significant Rally?
The influx of Bitcoin ETF investments and large holder inflows may suggest a gradual recovery in demand. However, the current demand seems relatively subdued, potentially explaining the absence of a corresponding upward movement.
Instead, Bitcoin’s price action aligned with the prevailing bearish sentiment. The fear and greed index dropped from 80 to 76 in the last 24 hours, indicating a decrease in optimistic sentiment.
Consistent with the above trends, open interest continued to decline entering the current week, signaling a waning interest in Bitcoin within the derivatives market.
Despite this, the overall open interest remained positive, indicating that while the fervent demand witnessed in November has cooled, investors are not rushing to offload their holdings.
This suggests that investors are cautiously positive about the potential for a bullish surge.
However, this sentiment does not guarantee a prolonged period of bullish demand among Bitcoin holders.
If the weak bullish demand persists, it could lead to a growing sense of bearish expectations, particularly as concerns increase regarding Fear, Uncertainty, and Doubt (FUD).