Bitcoin surged rapidly to surpass 94,000 USD, ending a period of several days of movement within a narrow range between 88,000 and 92,000 USD. The breakout occurred suddenly on December 9, with prices soaring in just a few minutes, managing to break through a resistance level that had been blocking the market for nearly a week.
Whale accumulation and short-side liquidations support the breakout price.
Trading data indicates that funds have flowed into the wallets of major institutions and wallets linked to exchanges at very high levels in the hour preceding this bounce.
There are several high-volume brokerage addresses accumulating thousands of BTC in a short period, indicating that deep-pocketed buyers entered the market before the price squeeze occurred.
The speed of this breakout indicates that the order book thinned rapidly as demand overcame resistance in the range, followed by a quickly changing market structure, and momentum increased as short sellers gradually closed positions under pressure.
Data on position liquidations confirm that the futures market absorbed this price increase rapidly, with liquidations across the crypto asset market exceeding 300 million USD in the past 12 hours. Bitcoin accounted for more than 46 million USD and Ethereum over 49 million USD.
The majority of position liquidations came from the short side, indicating that this price increase is a classic short squeeze, not due to a gradual uptrend.
As stop-losses were triggered successively, prices surged vertically and rapidly, with not much supply to resist.
Support from regulations and FOMC predictions boosts confidence.
This bounce occurred after the announcement of important policy changes from the Office of the Comptroller of the Currency in the United States, confirming that banks can engage in crypto transactions with no risk. This decision opens up opportunities for regulated institutions to act as intermediaries in the circulation of crypto assets without having to hold the assets directly.
This change expands institutional access opportunities, and since it happened just hours before the breakout, it may serve as a catalyst for pre-positioning.
Meanwhile, with the upcoming interest rate decision by the Federal Reserve, traders expect market liquidity to ease if there is an actual rate cut.
Bitcoin continues to move near the intraday high, with high volatility and the funding rates in derivatives being adjusted. Investors are watching to see if demand will continue until the FOMC committee's announcement or if profit-taking will exert pressure to slow down momentum at the peak.
