Bitcoin bottom at $94K? BTC traders regroup after ‘Kimchi premium’ flash crash

Bitcoin (BTC) bounced from weekly lows on Dec. 4 as analysis demanded a reclaim of the weekly open.

BTC price analysis flips cautiously bullish

Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD was approaching $97,000, which is up 1% on the day.

Flash volatility at the previous Wall Street open had come courtesy of political turmoil in South Korea, which briefly sent the price below $94,000.

The “Kimchi premium” — the difference in spot BTC price between South Korean exchanges and others — fell to its most negative in history before resetting. Moreover, the BTC/KRW trading pair flash crashed to roughly $78,000 on the South Korean cryptocurrency exchange BitHumb.

Now, key levels include Bitcoin’s 21-day simple moving average (SMA), currently at $94,560.

“Lows got raided into new york open before reversal. Ideally want to see price above $95K after that sweep,” popular trader Skew wrote in his latest X post on the 4-hour chart.

Skew added that reclaiming the weekly open at around $97,270 would be “very key for higher.”

Examining daily timeframes, popular trader and analyst Rekt Capital was nonetheless hopeful.

“Bitcoin continues to retest the series of Lower Highs as support. Producing longer and longer downside wicks. Grabbing liquidity at lower and lower prices without losing the trendline,” he told X followers.

“As long as this continues, BTC should be able to reclaim the ~$96400 support.”

Fellow trader CrypNuevo warned that a downside wick on weekly timeframes may yet see a more substantial retest, giving a potential target of $90,000 or lower.

“50% of the wick in the 1W chart has been filled,” he noted in part of his latest X post.

Bitcoin retail comeback in numbers

As Bitcoin investors take profits en masse over the past month, retail interest is “surging,” new research concludes.

Related: MicroStrategy can ignore Bitcoin bear market price crash to $20K — Research

Data from onchain analytics platform CryptoQuant shows the 30-day change in buyer volume among smaller investors passing 30%.

“This surge in retail interest may partly explain the strong ongoing demand, even as long-term holders begin to take profits,” contributor Darkfost reasoned in one of CryptoQuant’s Quicktake blog posts.

“Historically, increased retail participation has often signaled a potential local top. However, it also highlights growing market engagement, which, when combined with institutional interest, can create sustained positive momentum.”

The post saw $100,000 still on the radar as a decisive moment for market sentiment.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.