Bitcoin could still see a correction of up to 30% during its uphill battle to conquer the six-figure price tag for the first time.
The Bitcoin BTC
$95,749 price is currently down over 7% from its all-time high of around $99,800, breached on Nov. 22, Cointelegraph data shows.
While most analysts agree that topping $100,000 is only a matter of time, some analysts expect a deeper retracement before the milestone high.
Bitcoin could correct as deep as 30% before resuming its bullish run, according to Ryan Lee, the chief analyst at Bitget Research. The analyst told Cointelegraph:
“In its bid to cross the psychologically important $100,000 price level, investors will need to deal with intense corrections. Historical data trends show that Bitcoin may still correct as much as 30% before it reaches its cyclical top.”
While historical chart patterns aren’t always accurate in predicting future price action, a potential 30% correction from $99,800 would hypothetically tank Bitcoin price below $70,000.
Bitcoin breaching $100,000 is only a matter of time, and ETF inflows
While temporary corrections are an organic part of crypto bull markets, most analysts don’t expect the current correction to be long-lived.
This is because Bitcoin is set to surpass the $100,000 valuation in the short term, according to Anndy Lian, author and intergovernmental blockchain expert.
He told Cointelegraph:
“Bitcoin reaching $100,000 isn’t just a milestone; it’s a testament to the growing trust in decentralized finance and the relentless pursuit of financial sovereignty. As global adoption accelerates and institutional interest deepens, the $100,000 mark symbolizes not just a price, but a paradigm shift in how we perceive and utilize money.”
Sluggish investments in the United States spot Bitcoin exchange-traded funds (ETFs) have also contributed to Bitcoin’s price slump.
United States-based spot Bitcoin ETFs logged two days of net negative outflows, with net cumulative outflows of over $122 million on Nov. 26, Farside Investors data shows.
While slowing ETF inflows are common at the end of the month, a resurgence in ETF buying will help catalyze Bitcoin’s next leg up, according to Bitfinex analysts, who told Cointelegraph:
“Now that ETF flows appear to have hit a bump in the road and MicroStrategy purchases seem to have paused, it is quite normal for the price to undergo some correction and seek out a new supply-demand equilibrium as marginal buying ends.”
While Bitfinex analysts expect a correction of up to 20%, the analysts are confident that MicroStrategy’s latest $2.6 billion note sale and renewed ETF buying will bolster cryptocurrencies to new all-time highs leading into 2025.
Source: https://cointelegraph.com/news/bitcoin-30-correction-ahead-100k-btc-rally-analysts
Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.
Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.
An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.