30s Summary

Bitcoin nearly reached $100,000 on December 21, with Coinbase’s buying surge aiding this rise. Traders see potential for a breakout due to an inverse head and shoulders pattern. There is speculation that Bitcoin’s RSI is artificially low, indicating possible extended price increases. However, Bitcoin ETFs in the US experienced significant outflows on December 20.

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Bitcoin nearly hit the $100,000 mark on December 21st after a surprising jump in price. This sharp increase came after Bitcoin’s value hit lows around $92,000 earlier in the month. Meanwhile, as the weekend kicked off, a surge of buying from the biggest US exchange, Coinbase, brought much-needed respite. The price even soared to a high of $99,500 on Bitstamp, and it seemed unbothered by the lack of institutional trading.

Some traders have noted that the 50-day simple moving average (SMA) has acted as a steady support for Bitcoin’s price. Additionally, on hourly charts, they’re seeing signs of a potential breakout thanks to a classic pattern known as an inverse head and shoulders. This pattern typically signals short-term and long-term lows.

There’s also talk in the trading community about a “scam” breakdown in Bitcoin’s relative strength index (RSI). The RSI may have been driven artificially low, which previously has been followed by extended periods of price increases.

Despite Bitcoin’s price returning near $100,000, those investing in US spot Bitcoin exchange-traded funds (ETFs) may not be as thrilled. On December 20th, these ETFs saw net outflows of nearly $300 million. The largest, named the iShares Bitcoin Trust, experienced its largest net outflow on record, totalling $72.7 million.