Bitcoin Drops Below $93K: Can It Still Reach $100K?

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As a seasoned analyst with over two decades of experience in the financial markets, I have seen my fair share of bull and bear runs. The recent 8.2% drop in Bitcoin since last Friday, following its all-time high of $99,800, has certainly caught my attention.

Bitcoin‘s price has fallen approximately 8.2% since last Friday, following its all-time high of $99,800 on the same day. Currently, the cryptocurrency is being traded at around $92,226, causing some traders and investors to question whether the elusive $100,000 mark will ever be attained or if it was merely a fable.

What Analysts Are Saying

There’s been a significant drop in prices that experts are discussing. For example, Analyst AlphaBTC considers $93,000 as a crucial point, stating, “Bitcoin made a stealthy dip below its trendline, nudging the $93,000 support.” AlphaBTC anticipates that if Bitcoin falls below $90,000, it might drop to $85,000; however, he maintains his optimism, stating, “A target of over 100,000 is still possible this week!

A different expert, known as Crypto Rover, concurs with the viewpoint. He emphasized the significance of Bitcoin maintaining its position above a significant trendline, referring to it as “the crucial support level for Bitcoin at present.” Essentially, falling below this point might spark additional selling.

According to Michael van de Poppe, the creator of MN Capital, he echoes this belief that Bitcoin might drop to between $85,000 and $90,000 as an attractive buying point for investors. He remains optimistic that Bitcoin could still surpass $100,000 within the next fortnight.

What’s Behind the Drop?

The daily trading volume for Bitcoin reached an impressive $94.84 billion, demonstrating the high level of activity observed within the market even amidst a dip.

As a researcher, I’ve discovered from IntoTheBlook that approximately 511,390 wallets have purchased around 268,370 Bitcoins at prices ranging between $89,000 and $92,000, suggesting robust buying interest. However, analysts issue a word of caution: if Bitcoin were to lose this price support zone, there’s potential for the prices to decline even more.

Currently, Bitcoin Exchange-Traded Funds (ETFs) have been influential in this year’s price fluctuations. However, they’ve displayed contrasting trends recently. For instance, BlackRock’s IBIT ETF attracted approximately $267.8 million within the last 24 hours, whereas Bitwise’s BITB ETF experienced an outflow of about $280.7 million during the same period. Overall, these Bitcoin ETFs collectively had net outflows totaling $435.3 million over the past day, as reported by SoSoValue.

Why Are Sellers Cashing Out?

Long-term Bitcoin investors are cashing out following the latest surge, a move last seen in April 2024 prices.

As per a recent tweet by Glassnode, approximately 366,000 Bitcoins were sold over the last month, with daily sales from six- to twelve-month holders amounting to 25,600 BTC. This increased selling activity has contributed to the recent downward trend.

Currently, the price trend is being compared to past market cycles in 2013, 2017, and 2021 where bitcoin experienced a significant rise followed by a decline. Some pessimistic analysts predict a possible drop to $70,500, but many believe the $85,000-$90,000 zone is a critical battleground. If buyers become more active in this region, Bitcoin could potentially hit the highly anticipated $100,000 mark soon.

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2024-11-26 19:00