Bitcoin (BTC) has shown a significant amount of sideways movement over the past several days.
This situation has created uncertainty among traders, as they consider whether a major pullback is imminent or if Bitcoin could potentially surge past the $100,000 mark by the end of December.
While there are many variables at play before December concludes, the recent behavior of Bitcoin provides some clues about what might unfold this week.
This week started on a bearish note for Bitcoin, with prices dropping to $94,816 as of press time, marking a 3.44% decrease over the past two days.
Despite this slight decline, Bitcoin exchange-traded funds (ETFs) began the week on a positive note with net inflows. On Monday, Bitcoin ETF inflows totaled $353.6 million.
Although these figures were modest compared to peak days, they exceeded the positive inflows recorded on Friday ($320 million).
The uptrend in ETF flows was further supported by an interesting trend indicating potential accumulation of buying pressure.
Data from IntoTheBlock indicated a significant increase in large holder inflows from 102.4 BTC to 4,670 BTC between December 1st and 2nd, following a notable decline since 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 BTC inflows during the same period.
Could Bitcoin be Gearing Up for Another Bullish Surge?
The influx of Bitcoin ETFs and large holder flows may suggest a gradual recovery in demand. However, the prevailing demand seems relatively subdued, which may explain the lack of a corresponding price surge.
Bitcoin’s price movement has aligned with the overall decreasing market sentiment. The fear and greed index dropped from 80 to 76 in the last 24 hours, signaling a decline in bullish sentiment.
Additionally, open interest continued its downward trend this week, indicating a waning interest in Bitcoin from the derivatives market.
Despite this, open interest remains positive, suggesting that while the intense demand seen in November has eased, investors are not rushing to sell off their holdings.
This indicates a cautious optimism among investors regarding future bullish possibilities.
However, this optimistic outlook does not guarantee an enduring stance from Bitcoin holders.
If bullish demand remains weak for an extended period, it could lead to a shift towards bearish sentiments, especially amid increased fear, uncertainty, and doubt (FUD) in the market.