As US markets closed for Thanksgiving, the market’s largest cryptocurrency, Bitcoin (BTC), reclaimed the $96,000 mark, approaching its all-time high of $99,500 and the coveted milestone of $100,000.
Analysts are skeptical about maintaining momentum towards $100,000
The recent fluctuations in the price of Bitcoin have been attributed to a combination of profit-taking by long-term holders and broader market dynamics. like male By Andrei Dragosh, Head of Research Europe at Bitwise Large amounts of Bitcoin have been distributed in the recent rally, leading to oversupply.
Despite the recent rally, some strategists remain cautious about Bitcoin’s ability to break the $100,000 mark. David Morrison, a senior market analyst at Trade Nation, noted that this psychological threshold appears to have become a formidable obstacle to further price gains.
Sentiment among some market participants is that Bitcoin’s recent rally may create a “false sense of security,” as George Milling-Stanley, chief gold strategist at State Street Global Advisors, explained.
Milling-Stanley stressed that many investors are attracted to Bitcoin “solely for capital gains rather than any intrinsic value or benefit” offered by the market-leading cryptocurrency.
Galaxy Digital CEO Warns of Possible Bitcoin Correction
The recent launch of options on Bitcoin exchange-traded funds (ETFs) has added another layer to the market dynamics. These options enable investors to speculate on Bitcoin price movements with less capital compared to direct purchases.
This increased leverage can magnify potential gains and losses, noted Mike Novogratz, CEO of Galaxy Digital, who expects a market correction given the high levels of leverage in the cryptocurrency community.
Amid these mixed signals, some analysts see the possibility of a “Thanksgiving rally.” Cryptocurrency analyst Ali Martinez It has been identified A major demand area at $93,580, where approximately 667,000 addresses collectively purchased approximately 504,000 BTC. Maintaining this level of support is crucial to preventing crowd selling from these holders.
Martinez’s optimistic forecast suggests That holiday spirit could inspire conversations about Bitcoin among family members, which could lead to renewed interest and investment. The analyst further stated earlier on Thursday:
Tonight, coiners will be telling their families about Bitcoin BTC, leading to a Thanksgiving demonstration of sorts. This is why I believe that BTC is destined for a recovery to $99,000, and the technology supports that.
At the time of writing, the largest cryptocurrency on the market is trading at $96,780, up 10% in the fourteen-day time frame, but well below the gains made in the previous two weeks since the recent correction towards the $91,000 level on Tuesday.
Featured image of DALL-E, chart from TradingView.com