When the US markets closed for Thanksgiving, the largest cryptocurrency on the market, Bitcoin (BTC), regained the $96,000 mark, inching closer to its all-time high of $99,500 and the much-coveted $100,000 milestone. .
Analysts Skeptical About Sustaining Momentum Towards $100,000
Recent fluctuations in Bitcoin price have been attributed to a combination of profit-taking by long-term holders and broader market dynamics. As noted According to Andre Dragosch, head of European research at Bitwise, significant amounts of Bitcoin have been distributed in the recent rally, leading to an increase in supply.
Despite the recent rally, some strategists remain cautious about Bitcoin’s ability to break the $100,000 barrier. David Morrison, senior market analyst at Trade Nation, commented that this psychological threshold appears to have become a formidable obstacle to further price gains.
Sentiment among some market participants suggests that Bitcoin’s recent surge may create a “false sense of security,” as highlighted by George Milling-Stanley, chief gold strategist at State Street Global Advisors.
Milling-Stanley emphasized that many investors are attracted to Bitcoin “purely for capital gains rather than any intrinsic value or utility” that the market-leading cryptocurrency offers.
Galaxy Digital CEO warns of possible Bitcoin correction
The recent launch of options on spot Bitcoin exchange-traded funds (ETFs) has added another layer to the market dynamics. These options allow investors to speculate on Bitcoin price movements with less capital compared to direct purchases.
This higher leverage could amplify both potential gains and losses, as noted by Galaxy Digital CEO Mike Novogratz, who anticipates a market correction given the high levels of leverage in the crypto community.
Amid these mixed signals, some analysts see potential for a “Thanksgiving Day rally.” Cryptographic analyst Ali Martínez identified a key demand zone at $93,580, where approximately 667,000 addresses collectively purchased almost 504,000 Bitcoin. Maintaining this level of support is crucial to avoid sell-offs by these holders.
Martínez’s optimistic prognosis suggests that the spirit of the holiday could inspire conversations about Bitcoin among family members, which could lead to renewed interest and investment. The analyst further stated on Thursday:
Tonight, minters will tell their families about Bitcoin BTC, triggering a Thanksgiving rally of sorts. This is why I believe BTC is destined to rally to $99,000, and the technicals support this.
At the time of writing, the market’s largest cryptocurrency is trading at $96,780, up 10% in the fourteen-day period, but significantly lower than the gains reported in the previous two weeks since the recent correction towards the level. of $91,000 on Tuesday.
Featured image of DALL-E, chart from TradingView.com
