As a seasoned analyst with over two decades of experience in the financial markets, I’ve seen my fair share of market fluctuations and corrections. The recent dip in Bitcoin prices to a six-day low is not surprising, given the rapid upward momentum we’ve witnessed over the past few weeks.
On Tuesday morning in Asia, Bitcoin prices plummeted to a six-day low of around $92,775 due to an expected adjustment. This correction has caused the value to decrease nearly 7% from its record-breaking peak on November 22, which was $99,845.
Nonetheless, by November 26 in Asian markets, it was nearly at $95,000 again after making a comeback. Notably, Bitcoin has climbed approximately 40% since the start of this month.
Crypto market analysts have been weighing in on how low it will dip during this pullback.
Saylor Buys, Bitcoin Dumps
After Michael Saylor’s MicroStrategy made another significant Bitcoin purchase of approximately 55,500 BTC valued at around $5.4 billion on November 25th, a drop in price was observed.
Analyst Mags recently questioned, ‘With Saylor purchasing $5.4B in Bitcoins, why are ETFs still being stockpiled if the price is still under $100,000? Who’s selling?’
According to analyst ‘DonAlt,’ it appears as though Saylor may have been aiming to surpass the $100k mark but fell short, and now investors are anticipating further purchases from him.
As a crypto investor, I found myself echoing the sentiments of Bitcoin pioneer Adam Back when he questioned the recent surge in Bitcoin sales at prices below $100k. It’s truly baffling to me why such large volumes are being offloaded at this particular stage in the market.
Eric Balchunas, a senior ETF analyst at Bloomberg, highlighted the perplexity within the cryptocurrency sector by referencing on-chain statistics, suggesting that it’s long-term investors who are cashing out their gains.
It’s puzzling to many CT (Crypto Twitter) users why Saylor’s $5b Bitcoin purchase didn’t significantly increase the price, and this is reminiscent of discussions about ETFs after large inflows. However, here’s some data that supports what I’ve been saying for a while: the significant influence in the market comes from long-term holders, suggesting they might be manipulating the prices to their advantage.
— Eric Balchunas (@EricBalchunas) November 25, 2024
On November 25th, analyst James Check revealed that long-term investors have dispensed approximately $60 billion in supply over the past 30 days. In other words, they’ve been selling their holdings.
“This is the heaviest profit-taking we have seen so far this cycle.”
As a researcher studying market dynamics, I’ve come to understand that price corrections are a normal part of any market’s movement, and Bitcoin is no exception. By examining the previous three market cycles, an analyst known as ‘Rekt Capital’ noted that after a period of price discovery lasting 6-7 weeks, a significant correction followed. Currently, we’re only four weeks into this cycle. Given this observation, it’s possible that Bitcoin could experience further drops, potentially reaching the high $80k range.
During the 2013 cycle, Bitcoin didn’t undergo a significant correction until the seventh week following a six-week period of steady price increases, which is when we typically find out more about its value (Price Discovery phase).
During the 2017 market cycle, I observed that it was around week 7 when the price started to climb significantly, a phase I refer to as ‘Price Discovery’. It wasn’t until week 8, however, that a substantial correction of approximately -34% occurred.
In the 2020/2021 cycle, $BTC rallied 6…
— Rekt Capital (@rektcapital) November 25, 2024
Elsewhere on Crypto Markets
At present, other sectors in the market seem to be doing relatively well compared to Bitcoin. Ethereum, specifically, has seen a 3% increase today, currently valued at around $3,450. However, it encountered resistance near $3,500 during late-day trading on Monday and couldn’t break through.
Besides Bitcoin, alternative cryptocurrencies such as Ripple (XRP), Avalanche (AVAX), Uniswap (UNI), and The Internet Computer (ICP) are also picking up speed.
Nevertheless, a decline in the total market capitalization to $3.4 trillion occurred as a result of Bitcoin’s influence causing it to drop.
Read More
- FARTCOIN PREDICTION. FARTCOIN cryptocurrency
- SUI PREDICTION. SUI cryptocurrency
- Excitement Brews in the Last Epoch Community: What Players Are Looking Forward To
- The Renegades Who Made A Woman Under the Influence
- RIF PREDICTION. RIF cryptocurrency
- Smite 2: Should Crowd Control for Damage Dealers Be Reduced?
- Is This Promotional Stand from Suicide Squad Worth Keeping? Reddit Weighs In!
- Epic Showdown: Persona vs Capcom – Fan Art Brings the Characters to Life
- Persona Music Showdown: Mass Destruction vs. Take Over – The Great Debate!
- “Irritating” Pokemon TCG Pocket mechanic is turning players off the game
2024-11-26 09:04