Bitcoin Price Poised to Hit $100K as Active Wallets See Gains, Retail Interest Skyrockets

Highlights:

• Active Bitcoin wallets saw a +4.2% return in 30 days, suggesting possible future price gains.
• Retail interest in Bitcoin surged by 30%, signaling strong demand and potential price momentum.
• Bitcoin’s price recovery continues as it rises above $96,000, eyeing $100k mark.

Bitcoin (BTC), the largest cryptocurrency, began a bull run after Donald Trump’s presidential win. However, its recent price movements have been slower than many altcoins. Despite this, BTC withdrawals from exchanges are growing, and address metrics show Bitcoin’s price could rise further.

Bitcoin Wallets Show +4.2% Return in Last 30 Days, Potential for Price Correction

Blockchain analysis platform Santiment shared on X (formerly Twitter) that active Bitcoin wallets have seen an average return of +4.2 % in the past 30 days. An increase above +5% might lead to a price correction, while a drop below -5% is “usually a strong indicator that a bounce is near.” 

Santiment’s analysis showed many traders lost money buying Bitcoin at November’s peak. This may lead to healthier price changes with less volatility and gradual growth. Stablecoin inflows for USDT and USDC have surged in the past month. 

👍 The average returns of Bitcoin wallets that have been active in the past 30 days now sits at a much more reasonable +4.2%.

📉 +5% or more on this metric is usually a strong indicator that a correction is near.
📈 -5% or less on this metric is usually a strong indicator that… pic.twitter.com/EgGHK1kTxK

— Santiment (@santimentfeed) December 3, 2024

Nearly 20K BTC Withdrawn from Coinbase

The amount of an asset on trading platforms gives clues about its short-term price movements. A larger supply on exchanges increases the likelihood of a correction due to higher sell pressure and vice versa. Bitcoin’s outlook has been positive lately, with investors moving funds from exchanges to cold storage. From a short-term view, things look good, too, as CryptoQuant reports. The analytics firm highlighted two big withdrawals from Coinbase in 24 hours, totaling nearly 20,000 BTC, worth around $1.87 billion.

Two Significant Outflows Exceeding 8k #BTC Each from Coinbase in the Last 24h

“19,487 $BTC were withdrawn, with an average cost of $96,043. The total value of these two transactions amounts to approximately $1.87 billion.” – By @burak_kesmeci

Link 👇https://t.co/4WkEJ2p3vw pic.twitter.com/ADf1qWvkV2

— CryptoQuant.com (@cryptoquant_com) December 3, 2024

According to the CryptoQuant blog post, buyer volume among smaller investors has increased by over 30% in the past 30 days. Contributor Darkfost noted in a CryptoQuant Quicktake blog post that this surge in retail interest may help explain the strong ongoing demand, even as long-term holders start taking profits.

CryptoQuant stated:

“Historically, increased retail participation has often signaled a potential local top. However, it also highlights growing market engagement, which, when combined with institutional interest, can create sustained positive momentum.”

Bitcoin Price Analysis

Bitcoin started the week with a 1.38% drop, reaching a low of $93,578 on Tuesday. However, it bounced back and closed above $95,800. As of Wednesday, it continues to rise, trading above $96,000.

The Bitcoin Relative Strength Index (RSI) is back in bullish territory after staying in the overbought zone for a while. Currently, the RSI stands at 63.03, indicating that bulls continue to control the market. The leading digital asset is experiencing slight sideways movement as it prepares for the next surge.

Moreover, institutional investors viewed the recent Bitcoin pullback as a buying opportunity. Farside Exchange Traded Funds (ETF) data shows that US Bitcoin ETFs saw an inflow of $676 million on Tuesday, marking the second consecutive day of inflows this week. If this trend of inflows continues or speeds up, BTC could rise toward its all-time high (ATH) of $99,588 and potentially reach the $100k mark.