Bitcoin Dips Below $93K After 45% Rally, How Low Will BTC Go?
Following its epic 45% rally into price discovery this month, Bitcoin has finally begun its correction, but how low will it go?
Bitcoin prices dumped to a six-day low of $92,775 during early trading on Tuesday in Asia. The widely anticipated correction has taken the asset down almost 7% from its Nov. 22 all-time high of $99,845.
However, it had already started to bounce back coming just shy of $95,000 in Asian trading on Nov. 26. Moreover, Bitcoin remains up almost 40% so far this month.
Crypto market analysts have been weighing in on how low it will dip during this pullback.
Saylor Buys, Bitcoin Dumps
The dip follows another big purchase by Michael Saylor’s MicroStrategy, which scooped up a whopping 55,500 BTC worth around $5.4 billion on Nov. 25.
“Saylor just bought $5.4B of Bitcoin, ETFs continue to accumulate, who is selling that we’re still below 100k?” asked analyst and advisor “Mags.”
“Kinda feels like Saylor really wanted to break $100k and failed, and now the market is just waiting for him to buy more,” said analyst ‘DonAlt.’
Bitcoin pioneer Adam Back also questioned the move: “Confusing indeed, a puzzler what lettuce hands are selling Bitcoin in volume below $100k … just why at this stage in the market.”
Bloomberg’s senior ETF analyst Eric Balchunas noted the confusion in the crypto community pointing to on-chain data revealing that it was long-term holders taking profits.
I see a lot of CT baffled/frustrated as to how Saylor can buy $5b of btc but price doesn’t move up- which is same thing I hear sometimes about ETFs after big flows. Here’s data showing what I’ve long been saying: the call is coming from inside the house, it’s long term hodlers. https://t.co/tvQsXvWV0U
— Eric Balchunas (@EricBalchunas) November 25, 2024
On Nov. 25, analyst James Check reported that long-term holders had distributed $60 billion worth of supply in the last 30 days, adding:
“This is the heaviest profit-taking we have seen so far this cycle.”
Price corrections are perfectly natural market movements – price doesn’t move in a straight line. Analyst ‘Rekt Capital’ compared the previous three cycles, observing that Bitcoin was in price discovery for 6-7 weeks before a large correction occurred. It has only been in price discovery for 4 weeks so far during this cycle, which means it could drop further into the high $80k range.
In the 2013 cycle, it took 6 weeks of upside into Price Discovery before #BTC experienced its first major correction in Week 7
In the 2017 cycle, it took 7 weeks of upside into Price Discovery before a first major retrace of -34% in Week 8
In the 2020/2021 cycle, $BTC rallied 6…
— Rekt Capital (@rektcapital) November 25, 2024
Elsewhere on Crypto Markets
The rest of the market appears to be holding up better than Bitcoin at the moment. Ethereum is up 3% on the day at $3,450 but was thwarted by resistance at $3,500 in late trading on Monday.
Other altcoins continuing to gain momentum include XRP, Avalanche (AVAX), Uniswap (UNI), and Internet Computer (ICP).
However, the total market cap had dipped to $3.4 trillion due to Bitcoin’s dominance dragging it down.
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