Bitcoin traders are staying cautious but optimistic after a wild price dip below $94,000, triggered by political turmoil in South Korea. On Dec. 4, BTC bounced back, pushing toward $97,000, up 1% on the day. Popular trader Skew noted, “Lows got raided into New York open before reversal. Ideally want to see price above $95K after that sweep.” As the price stabilized, Bitcoin’s 21-day moving average (SMA) at $94,560 became a key point to watch, with analysts closely eyeing the potential for a recovery.
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Retail Interest for Bitcoin Surges amid Volatility
Despite the recent flash crash, Bitcoin is seeing a surge in retail interest. Data from CryptoQuant reveals a 30% increase in buyer volume among smaller investors over the past month. This spike in retail activity could be fueling Bitcoin’s positive momentum, even as long-term holders take profits. However, CryptoQuant’s contributor Darkfost warned that increased retail participation often signals a local top.
With Bitcoin continuing to bounce back and traders like Rekt Capital optimistic about its support levels, the $100,000 price mark remains a crucial threshold for market sentiment.
At the time of writing, Bitcoin is sitting at $94,831.05.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
