As US markets closed for Thanksgiving Day, the largest cryptocurrency on the market, Bitcoin (BTC), recovered the $96,000 mark, inching closer to its all-time high of $99,500 and the much-coveted $100,000 milestone.
Analysts Skeptical Of Sustaining Momentum Toward $100,000
Recent fluctuations in Bitcoin’s price have been attributed to a combination of profit-taking by long-term holders and broader market dynamics. As by Andre Dragosch, head of research for Europe at Bitwise, significant amounts of Bitcoin have been distributed into the recent rally, leading to increased supply.
Despite the recent rally, some strategists remain cautious about Bitcoin’s ability to break through the $100,000 barrier. David Morrison, a senior market analyst at Trade Nation, remarked that this psychological threshold seems to have become a formidable hurdle for further price gains.
The 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 drawn to Bitcoin “purely for capital gains rather than any intrinsic value or utility” offered by the market’s leading cryptocurrency.
Galaxy Digital CEO Warns Of Potential Bitcoin Correction
The recent launch of options on spot Bitcoin exchange-traded funds (ETFs) has added another layer to the market’s dynamics. These options enable investors to speculate on Bitcoin’s price movements with less capital compared to outright purchases.
This increased 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 rally.” Crypto analyst Ali Martinez a key demand zone at $93,580, where approximately 667,000 addresses collectively bought nearly 504,000 Bitcoin. Maintaining this support level is crucial to prevent mass selling from these holders.
Martinez’s optimistic forecast that the spirit of the holiday could inspire conversations about Bitcoin among family members, potentially driving renewed interest and investment. The analyst further stated earlier on Thursday:
Tonight, coiners are going to tell their families about Bitcoin BTC, triggering some sort of Thanksgiving rally. This is why I think BTC is bound for a rebound to $99,000, and the technicals support it.
At the time of writing, the largest cryptocurrency on the market is trading at $96,780, up 10% in the fourteen-day time frame, yet significantly lower of the gains reported the previous two weeks since the recent correction towards the $91,000 level on Tuesday.
Featured image from DALL-E, chart from TradingView.com