Bitcoin Short Sellers Roast Like Christmas Chicken

There has been significant whale activity in tandem with Bitcoin's 6% percent price drop over the last seven days

Written by: Olumide Adesina • Wednesday, December 25, 2024 • 2 min read

• Last updated: Wednesday, December 25, 2024

The Fed’s hawkish Q1 2025 guidance has caused large corporate investors to rebalance their holdings. Thus, there has been significant whale activity in tandem with Bitcoin’s 6% percent price drop over the last seven days. The average value of Bitcoin transactions during this market downturn has significantly increased.

95,733 traders were liquidated for the day, the total liquidations comes in at $252.68 million as Bitcoin reclaimed the $95k support line. Bitcoin short sellers lost $70 million for the day amid record outflows in the digital asset space.

Bitcoin funds saw outflows totaling more than $1.05 billion For the fourth consecutive trading day, the largest-ever single-day outflow in BlackRock’s Bitcoin exchange-traded fund (ETF).

BlackRock’s iShares Bitcoin Trust ETF (IBIT) saw withdrawals totaling $188.7 million on December 24 surpassing the $72-7 million record set in December.

Christmas Eve saw a combined outflow of $338.4 million from all 12 US-based spot Bitcoin ETFs. since December. 19 The funds have experienced $1.52 billion in combined net outflows.

Digital asset investment products saw $308 million in inflows last week, but a significant outflow of $576 million on December 19th overshadowed this. Outflows totaled $1 billion over the final two days of the week. The Federal Reserve’s hawkish stance, likely caused the recent price declines to result in a $17.7 billion drop in the total assets under management (AuM) for Digital Asset ETPs.

Bitcoin futures are confined to a defined range of $95,000 to $98,000. This range is crucial because it is surrounded by important levels that have historically impacted price action These levels serve as possible turning points, where pressure to buy or sell may cause breakouts or reversals.

The Bull Bear Power (BBP) indicator, which has been in negative territory for a while, lends more credence to the bearish dominance. The midline of the Donchian Channels, $99,426, is where resistance is located. A bullish recovery could be indicated by a break above this level and a possible test of the upper resistance level of $108,353.

Bitcoin’s immediate future depends on its capacity to maintain a price above the $95K support line. While a sustained move above $99,426 might invalidate the current downtrend and indicate the beginning of a recovery, a close below this level could confirm bearish forecasts.

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ABOUT THE AUTHOR See More

Olumide Adesina

Financial Market Writer

Olumide Adesina is a French-born Nigerian financial writer. He tracks, analyzes, and reports changes in financial markets with over 15 years of working experience in investment trading.