Bitcoin (BTC) ended a volatile week just below the long-anticipated $100,000 milestone, hovering around $98,000 after a sharp correction from an intraday high of $104,088. Despite the pullback, strong institutional demand, continued whale accumulation, and regulatory optimism fueled bullish momentum. However, signs of profit-taking, potential supply pressure from dormant wallets, and technical caution suggest traders should remain vigilant in the short term.
Institutional Demand and Whale Accumulation Remain Strong
This week marked a historic surge as Bitcoin briefly breached $100,000, peaking at $104,088 before correcting down to $90,500. It later recovered to trade above $96,900, closing near $98,000 by Friday. Underpinning this rally was robust institutional inflow.
According to Coinglass, spot Bitcoin ETFs saw a total inflow of $2.4 billion by Thursday—compared to a $136.5 million outflow the previous week. Sustained or accelerating inflows could provide further fuel for upward momentum in the coming weeks.
Corporate adoption also remained strong. Marathon Digital Holdings (MARA) increased its Bitcoin holdings from 17,000 BTC on Monday to 22,000 BTC by Friday—an addition of 5,000 BTC worth approximately $535 million at current prices. This brings MARA’s total BTC stash to over $2.17 billion, signaling growing confidence among public companies in Bitcoin as a long-term reserve asset.
👉 Discover how institutional adoption is reshaping Bitcoin’s market dynamics.
Meanwhile, on-chain data from Lookonchain revealed that a single whale capitalized on the dip following the $100K pullback, purchasing 600 BTC ($58.85 million). Over the past two weeks, this entity has accumulated 1,300 BTC—worth around $127 million—demonstrating strong conviction among large investors despite short-term volatility.
Positive Catalysts Driving Momentum
Several key developments contributed to Bitcoin’s bullish run this week.
Michael Saylor, co-founder of MicroStrategy—one of the largest corporate Bitcoin holders—delivered a presentation to Microsoft’s board advocating for the tech giant to add Bitcoin to its balance sheet. “Microsoft cannot afford to miss the next technological wave—and Bitcoin is that wave,” Saylor reportedly stated.
A shareholder proposal is set for December 10 to vote on whether Microsoft should adopt Bitcoin as a treasury asset. According to a report by QCP Capital, approval could have far-reaching bullish implications not only for Bitcoin but also for Microsoft’s broader investment strategy.
Regulatory sentiment also improved significantly when President-elect Donald Trump announced Paul Atkins, CEO of Patomak Global Partners, as his nominee for SEC chair. Known for his pro-crypto stance, Atkins’ potential appointment signaled a shift toward more favorable oversight of digital assets—a major relief for market participants after years of regulatory uncertainty.
Even geopolitical figures weighed in. Russian President Vladimir Putin reportedly stated during an investment forum in Moscow: “Who can ban Bitcoin? No one. Who can ban other electronic payment methods? No one.” While not an endorsement per se, such comments from global leaders underscore Bitcoin’s growing recognition as an unstoppable financial force.
Warning Signs for Short-Term Traders
Despite the optimism, several cautionary signals emerged.
Alvin Kan, Chief Operating Officer at Bitget Wallet, told FXStreet that a “healthy correction” is likely in the near term. “With increasing market liquidity, traders should exercise caution with leveraged futures contracts to avoid liquidation risks during sudden downturns,” he advised. He also highlighted the potential for an altcoin season post-correction.
One of the clearest signs of profit-taking comes from Santiment’s Net Profit/Loss (NPL) metric. The NPL spiked sharply on Thursday as prices hit their peak—indicating that many holders sold at a profit. A similar spike on November 21 preceded a 7%+ correction over the following five days. If history repeats itself, a comparable pullback could be imminent.
👉 Learn how on-chain metrics like NPL can help predict market reversals.
Additional supply pressure looms from dormant wallets:
- The U.S. government moved 10,000 BTC—worth $962.88 million—from seized Silk Road addresses to Coinbase Prime on Monday.
- On Tuesday, it transferred over $33.5 million worth of altcoins (including ETH, COMP, and AXS) to new wallets.
- Meanwhile, Mt.Gox, the defunct exchange undergoing creditor repayments, transferred 24,052 BTC ($2.43 billion) on Thursday and another 3,620 BTC ($352.69 million) on Friday to fresh addresses.
Any large-scale sale or distribution from these entities could trigger bearish sentiment due to increased sell-side pressure.
Technical Outlook: Toward $120K or Down to $85K?
Bitcoin’s price action formed a classic bull trap pattern: a breakout above $100K followed by a rapid reversal. After reaching $104,088, it plunged to $90,500 before recovering slightly.
The Relative Strength Index (RSI) shows a bearish divergence—price made a higher high, but RSI did not confirm it. This often precedes short-term corrections.
Traders should watch two key scenarios:
- Bearish case: A failed retest of $104,088 could lead to a drop toward $90,000 support. A close below this level may open the door to $85,000.
- Bullish case: A sustained close above $104,088 could propel BTC toward the 141.4% Fibonacci extension level at **$119,510**, aligning with the broader uptrend from the November 4 low of $66,835.
Market structure suggests consolidation or correction is likely before the next major directional move.
Frequently Asked Questions (FAQ)
Q: What caused Bitcoin to drop after hitting $104K?
A: The pullback was driven by profit-taking from short-term holders, bearish technical divergence (RSI), and concerns over potential supply influx from Mt.Gox and U.S. government wallets.
Q: Is institutional demand still strong for Bitcoin?
A: Yes. Spot Bitcoin ETFs recorded $2.4 billion in inflows this week, and companies like MARA continue adding BTC to their balance sheets—signaling sustained institutional confidence.
Q: Could Mt.Gox repayments crash the market?
A: While large transfers have occurred, actual creditor distributions may be gradual. Panic-driven selling is possible but not guaranteed; markets may absorb supply over time.
Q: What does a pro-crypto SEC chair mean for Bitcoin?
A: It increases the likelihood of clearer regulations, faster approvals for financial products (like ETFs), and reduced legal uncertainty—overall bullish for long-term adoption.
Q: How do whale purchases affect price?
A: Large accumulations by whales often signal confidence and can stabilize prices during dips. Their buying activity can also trigger FOMO among retail investors.
Q: What is Bitcoin dominance and why does it matter?
A: It measures BTC’s market cap as a percentage of the total crypto market. High dominance suggests risk-off behavior; declining dominance often precedes altcoin rallies.
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Note: This article does not constitute financial advice. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.