Bitcoin forms short-term bottom, $100K relief rally in sight: Analyst

The flow of capital into spot Bitcoin and Ethereum ETFs has shown signs of recovery, marking the first week of net-positive inflows since October, following a prolonged period of outflows. This shift indicates a potential stabilization in institutional demand for these cryptocurrencies after a challenging month.

Bitcoin miners are facing a challenging December as the network's mining difficulty is set to increase from 149 trillion to nearly 150 trillion, while hashprice remains low at around $38.3 PH/s, just above the break-even point for many operations. This situation is exacerbated by a recent decline in Bitcoin's price, which has raised concerns among miners about the sustainability of their operations.

Bitcoin's price remains near $91,000, hindered by weak ETF flows and cautious derivatives trading, despite a rally in stocks and gold driven by rising bets on interest rate cuts. Analysts express concern over Bitcoin's inability to break this key resistance level.

Recent research indicates that Bitcoin's price action is closely mirroring the 2022 bear market, with a correlation rate reaching 98%. This trend coincides with a notable influx of $220 million into Bitcoin exchange-traded funds (ETFs), suggesting a potential shift in market sentiment.

Strategy CEO Phong Le announced that the company would consider selling Bitcoin as a last resort if its stock falls below net asset value and funding options become unavailable, emphasizing a financial decision-making process.

Bitcoin Spot ETFs in the U.S. have reversed a four-week trend of outflows, recording $70 million in net inflows, coinciding with a recovery in Bitcoin's price. This positive shift marks an end to a month characterized by losses for these investment funds, reflecting renewed investor interest in cryptocurrency products.

Apple Pay has integrated with leading cryptocurrency platforms, making the process of buying Bitcoin and other cryptocurrencies significantly easier and more intuitive for users. This integration marks a pivotal shift in the accessibility of digital currencies, streamlining what was previously seen as a complex acquisition process.

The Bitcoin market has stabilized around $90,000 following a recovery from a significant drop to $80,000, suggesting a potential local bottom formation. Recent data from Bitcoin miners indicates they are underpaid, historically a strong signal for market reversals. Analysts are observing this behavior closely as it aligns with the recent price movements and miner activity.