Bitcoin Price Crash: Will BTC Sell Off Continue Ahead?

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As a researcher with over two decades of experience in the financial markets, I have seen many cycles and corrections, but the rise of Bitcoin has been nothing short of extraordinary. After closely observing the recent price correction, my analysis suggests that while it may signal a temporary pause in Bitcoin’s uptrend, the bullish momentum remains strong.

The recent dip in Bitcoin’s price has caused discussions among experts and investors regarding its possible future direction. Following a quick revisit to $99,000, Bitcoin’s price increase seems to have lost some speed, leading people to wonder if this could be the beginning of a larger decline or simply a brief pause within an ongoing upward trend.

Analysts Highlight BTC Price Key Levels

According to crypto trader Ali Charts, the key focus lies on the $96,000 mark for Bitcoin price. If the Bitcoin price dips below this level, subsequent potential support points could be at $90,000 and $85,000. This perspective aligns with traditional Fibonacci retracement levels often used by traders to interpret market shifts and possible reversals.

In a nutshell, according to what’s suggested by the Fibonacci levels, if Bitcoin drops below $96,000, the attention then shifts towards $90,000 and $85,000, as per Ali’s tweet.

In response to this, Robert Kiyosaki – a proponent of Bitcoin – expressed that it’s never too late to jump into the market. He emphasized Bitcoin’s consistency and potential for wealth creation by stating, “Bitcoin is structured so that everyone can become wealthy, even those who join later on. However, avoid letting greed cloud your judgment.

Long-Term Holders Take Profits as Short-Term Investors Step In

According to data from Glassnode, there’s been a noticeable shift in the holding patterns of long-term Bitcoin investors (LTHs) over the past two months. Specifically, the total amount of Bitcoin held by these investors has dropped from approximately $14.23 billion to $13.31 billion.

The increase in Bitcoin’s price from around $58,000 to more than $100,000 indicates that institutional investors might be taking advantage of the current high levels by cashing out their profits.

Instead, long-term holders have offloaded their sales to short-term holders (STHs), who have been buying to keep prices stable. Glassnode analysts note that the proportion of wealth controlled by new investors has not yet reached levels seen during past market peaks, suggesting there may still be potential for growth.

Bitcoin’s Bullish Momentum Remains Intact

Despite the recent correction, some analysts remain optimistic about Bitcoin’s price trend. The AVIV Ratio, focusing on unrealized profits, currently stands at 1.81 – significantly lower than the extreme levels that often precede a shift in market direction.

In simpler terms, even though certain traders might have cashed out their gains, the market isn’t showing signs of excessive enthusiasm or aggression yet.

Currently, the prominent figure in Cryptocurrency continues to express optimism regarding Bitcoin’s future prospects. He emphasized that Bitcoin has been showing signs of growth with higher peaks and higher troughs, suggesting that the overall trend remains bullish. In his opinion, the upcoming target for Bitcoin could be the 100% Fibonacci extension level at around $113,000.

Institutional Demand Could Propel Bitcoin Further

The use of Bitcoin continues to be robust, reaching an asset value of $37 billion for Bitcoin ETFs by December 19th. This significant increase stands in contrast to the $24.23 billion recorded on November 1st, as underscored by Farside Investors.

Concurrently, statistics indicate that at Bitcoin’s highest point of $108,000, around two-thirds (62.17%) of traders had bet against its rise, predicting a decrease in price. However, when Bitcoin dipped to $96,000, there was a shift in sentiment as now over half (55.44%) of the traders are optimistic, foreseeing a surge in the value of the cryptocurrency.

Based on their analysis, Bitfinex experts foresee that the upcoming correction in Bitcoin’s price will likely be moderate due to increasing institutional interest. They predict the price could reach $145,000 by mid-2025, potentially even surpassing $200,000 under favorable conditions.

Additionally, as more discussions emerge on the possibility of Bitcoin serving as a national strategic reserve, analysts predict this move could potentially drive Bitcoin’s value up to a staggering $1 million.

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2024-12-20 02:56