Bitcoin’s journey towards the psychological $100,000 mark has “stalled” amid $430 million in long liquidations and growing concerns over the upcoming November 27 inflation data and the Fed minutes. This conclusion was reached by CryptoQuant.
Asia Color — 26 Nov 24
1/ Bitcoin dips below $93K — a $430M liquidation event coincides with a $438M ETF outflow on Monday, snapping a five-day streak of inflows. Meanwhile, MicroStrategy slips 4.4% after its record $5.4B #BTC purchase last week.
— QCP (@QCPgroup) November 26, 2024
Experts also mentioned a $438 million outflow from BTC-ETF.
The situation could be exacerbated by the U.S. holiday on November 28 (Thanksgiving).
Experts noted that the trigger for the reversal was MicroStrategy’s purchase of 55,500 BTC for $5.4 billion.
Implied volatility has shifted towards puts, “as the market takes a breather,” analysts concluded.
CryptoQuant CEO Ki Young Ju noted that the current pullback cannot be called “excessive.” Prices are retreating to last week’s levels.
Even in a parabolic bull run, #Bitcoin can see -30% pullbacks.
Such corrections repeatedly occurred during the 2021 price discovery from 17K to 64K.
This isn’t a call for a correction—just manage your risk and avoid panic selling at local bottoms. We’re in a bull market. pic.twitter.com/B5zpk7P0N9
— Ki Young Ju (@ki_young_ju) November 26, 2024
“After the elections, the market became extremely overbought due to excessive leverage, making a pause inevitable,” explained the expert.
He reminded that even in a parabolic bull run, Bitcoin is prone to 30% pullbacks. Such corrections occurred repeatedly in 2021.
“Just manage your risk and avoid panic selling at local bottoms,” recommended the CEO of CryptoQuant.
Ki Young Ju’s colleagues noted that the pressure for profit-taking has not reached the peak observed after the previous ATH in March. This leaves room for further price increases.
FOMO-Driven Rallies and Risk of Profit-Taking
“The green bars showing STH selling in profit have yet to reach levels seen during the previous $72.4k peak. This suggests that profit-taking pressure hasn’t peaked, leaving room for further upward movement in price.” – By… pic.twitter.com/Edo3nvjwUN
— CryptoQuant.com (@cryptoquant_com) November 25, 2024
According to analysts, if the momentum continues, the rate could rise to $100,000 on FOMO-demand.
Earlier, FalconX warned of a weakening initiative from Bitcoin bulls.
Back in November, Bernstein analysts identified catalysts for the first cryptocurrency’s growth to $200,000.