Bitcoin Price May Face 30% Correction Before $100,000 Milestone
Bitcoin Price– Bitcoin’s price has recently experienced a pullback after approaching the $100,000 mark for the first time, raising concerns of a potential correction. As of now, Bitcoin is down more than 7% from its all-time high of approximately $99,800, which was reached on November 22, 2024. While many analysts remain optimistic about Bitcoin surpassing the six-figure price tag, some predict a deeper retracement before the cryptocurrency achieves this milestone.
Potential for a 30% Correction Before $100,000
Ryan Lee, chief analyst at Bitget Research, suggests that Bitcoin could experience a correction of up to 30% before continuing its upward trajectory. According to Lee, historical trends show that Bitcoin often faces significant corrections when pushing towards psychologically significant price levels like $100,000.
In an interview with Cointelegraph, Lee explained, Investors will need to brace for intense corrections as Bitcoin tries to breach the $100,000 mark. Historical data indicates that Bitcoin may still correct as much as 30% before it hits its cyclical peak. This suggests that a potential 30% pullback from Bitcoin’s recent peak of $99,800 could send the cryptocurrency below $70,000 temporarily. However, this correction could be part of Bitcoin’s natural market cycle before it eventually surpasses $100,000.
Bitcoin’s Long-Term Bullish Momentum
Despite the possible short-term correction, many analysts agree that Bitcoin will eventually break through the $100,000 threshold. Anndy Lian, an author and blockchain expert, highlights that Bitcoin’s rise to $100,000 is not just a price milestone but a reflection of the growing trust in decentralized finance and global adoption of cryptocurrencies.
Lian stated, 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 institutional interest continues to rise and global adoption accelerates, the $100,000 mark will likely represent more than just a price level but a major shift in how we perceive and utilize money.
Impact of ETF Flows on Bitcoin Price
Another factor affecting Bitcoin’s price in the short term is the slowdown in investments in U.S.-based spot Bitcoin exchange-traded funds (ETFs). Recent data shows that spot Bitcoin ETFs experienced net outflows of over $122 million on November 26. While this is a typical occurrence towards the end of the month, analysts believe that a resurgence in ETF inflows will likely drive Bitcoin’s price higher once again.
Bitfinex analysts noted that the current price correction is normal, given the pause in MicroStrategy’s Bitcoin purchases and slower ETF inflows. However, they remain confident that renewed ETF buying, alongside institutional purchases, will propel Bitcoin to new all-time highs as 2025 approaches.
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