Will Thanksgiving Crash BTC Below $90k?

by

As a seasoned analyst with over two decades of experience in the financial markets, I have witnessed numerous market corrections and crashes. The fear of a Bitcoin Thanksgiving crash is not new to me, having gone through similar situations in the past.

In a short while, it will be Thanksgiving in the United States, but instead of anticipation and joy, crypto investors are feeling apprehension due to the potential BTC Thanksgiving crash. This anxiety is growing, particularly given the recent performance of tokens, as the price of Bitcoin is currently consolidating after reaching an all-time high (ATH) of $99,600.

In the last six days, Bitcoin reached an all-time high and was expected to surpass $100,000. However, it dipped by over 9% and fell to approximately $91,000 before rebounding today. Despite this, several cryptocurrency experts are worried about a potential Bitcoin crash around Thanksgiving that could further lower its value below the $90,000 mark.

What’s the BTC Thanksgiving Crash?

For over fifteen years, Bitcoin has been a significant player in the cryptocurrency sector. It experienced a challenging start, and it took quite some time before the investment community truly recognized this industry. Even with its rapid expansion, Bitcoin’s value fell dramatically on numerous occasions. One notable instance occurred on the 2020 Thanksgiving Day in the United States when the Bitcoin price plummeted by over 17% within just a few hours.

During that period, the cryptocurrency was being exchanged at approximately $19,500, but within a short span of time, its value plummeted to about $16,200, sending shockwaves through the entire crypto market. This event became known as the “Thanksgiving Day Massacre,” marking a significant drop in BTC prices.

It’s intriguing to note that following the Thanksgiving accident, there were substantial profits reported a few days later. Bitcoin Historian, a crypto analyst, disclosed that those who purchased during the Thanksgiving Massacre have earned approximately 480% or five times their initial investment.

#Bitcoin crashing below $16k, exactly 4 years ago. They called it the “Thanksgiving Day Massacre.”

Everyone who bought the dip is up 480%

— The Bitcoin Historian (@pete_rizzo_) November 26, 2024

Investors Fear BTC Crash Following Consolidation

Today, the overall crypto market has experienced a downturn, surprising many investors who had been hopeful about Bitcoin reaching $100k. However, this didn’t happen as expected; instead, its price dipped to around $91k. Analysts like Ali saw this as an early ‘Black Friday sale’, encouraging people to take advantage of the price drop.

Rather than viewing it as a chance, the apprehension persisted as discussions about the Thanksgiving crash or the Thanksgiving Day Massacre ensued. Nonetheless, this event has had no impact on the crypto market crash. Instead, it was triggered by the selloff from long-term holders and overbuying conditions that drove the tokens’ prices lower.

Yet, analysts anticipate a persistent improvement moving forward, since the graphs indicate the beginning of a local low point formation.

Will the Thanksgiving Massacre push BTC Down $90K?

Despite continuous merging, the Bitcoin price has surged by 35% within the month, thus debunking the theory of a Bitcoin crash on Thanksgiving Day. Moreover, in comparison to 2024, Bitcoin is far more robust today. It enjoys the backing of influential figures like President-elect Donald Trump, and the approval of the Bitcoin ETF has reduced the likelihood of sudden price drops for this cryptocurrency. Most significantly, there was a dramatic market drop in 2020; however, such an event seems improbable given the ongoing consolidation. If it does occur, it would be part of this consolidation and its recovery would likely be swift.

As a crypto investor, I’d like to share some perspective before letting fear of a potential Thanksgiving crash take over. Looking back at the 2020 Bitcoin crash, the graphs certainly indicate a significant drop, but what stands out more is its remarkable recovery. Despite the dip, it managed to rebound quickly, reaching $20,000 just four days later and surpassing the $30,000 mark by year-end. This impressive resilience has helped maintain my trust in this token. So, while market fluctuations can be unsettling, remembering past recoveries like this one might help bolster our confidence as investors.

In essence, if the “Thanksgiving massacre” event occurs this year, it’s highly probable that the price of Bitcoin will reach a new all-time high (ATH) just a few months later.

Read More

2024-11-27 20:08