Current Bitcoin Price Trends: What You Should Know 😊
Persistent discussions have emerged regarding a potential price correction for Bitcoin. While there has indeed been a price adjustment already, signs indicating a revival of bullish momentum in the near future remain elusive.
Historical Price Corrections of Bitcoin 📉
The rise of Bitcoin’s value began following Donald Trump’s electoral success on November 5, leading to a bullish trend that lasted approximately a month. However, this surge was not without its fluctuations, as evidenced by two notable corrections during this period.
The initial price decline took place from November 23 to November 26, coinciding with Bitcoin surpassing the $99,000 mark for the first time. This downward adjustment resulted in a 9% drop from its peak, occurring over four days, followed by a prompt recovery. By November 29, the Bitcoin price rebounded, nearing $99,000 again.
The second notable correction occurred last Thursday, immediately after Bitcoin surged past $100,000. In this instance, the price retraced by 11% in one day, but similarly rebounded to above $97,000 on the same day. The brief duration of this correction renders it nearly negligible.
Potential for Another Price Adjustment 🔄
At one point today, Bitcoin’s price exceeded $100,000—similar to the records set on Friday, Saturday, and Sunday—before retracting below $99,000 once again. These fluctuations lack significance, indicating a sideways movement around the $100,000 level since it was first breached.
Currently, indicators suggest there is minimal chance of a bullish resurgence in the short term. Discussions are circulating that it might be several weeks until the market can recover its bullish trend, allowing ample opportunity for another price correction.
Diversion of profit appears to play a crucial role in the current market dynamics. Those who acquired Bitcoin prior to Trump’s electoral victory and have yet to liquidate their holdings might consider selling at a profit now. While some may hold out for a renewed bullish trend, the uncertainty could prompt others to sell sooner rather than later.
If we draw parallels to previous corrections, such as the significant drop at the end of November, which showcased a 9% decline within four days, a similar situation could bring Bitcoin prices down to around $92,000, although estimates suggest it may settle closer to $94,000.
Outlook for a Bullish Revival 🐂
Anticipations are high for increased volatility post the 20th of the month. Should a correction occur beforehand, it’s feasible to project that the subsequent volatility may lean towards a bullish trend.
Every year tends to witness a recurring pattern during bull runs, which may repeat in this case. Selling in December typically incurs tax liabilities on capital gains in the subsequent year. Conversely, postponing the sale to early January would defer this tax payment by a full year.
This leads to a compelling rationale for some traders to hold off on selling in December to extend the tax implications. Consequently, selling pressure could diminish during the latter half of December, potentially resulting in price increases if demand remains robust.
However, it’s important to note that this selling dynamic is likely to shift in January, although such patterns seldom persist into February.
Challenges at the $100k Level ⚠️
Short-term sentiments lean towards pessimism, largely due to the instability surrounding the $100,000 mark. As prices fluctuate, many investors may opt to cash out if they become convinced that the bullish trend isn’t imminent.
The distinction between speculators and long-term holders is noteworthy here; while speculators often engage in short-term trading, holders typically maintain a medium to long-term outlook on their investments.
However, several indicators hint that the bullish trend may extend into 2025. Therefore, while some speculators may want to secure their profits, long-term holders might decide to maintain their positions for several months.
The current landscape indicates that the amount of Bitcoin on exchanges has reached a multi-year low, signaling that holders are retaining their assets while speculators may have already realized their profits.
Lastly, today, the CoinMarketCap altseason index dipped below 75 points, suggesting an end to the recent mini-altseason. In essence, the bullish momentum sparked by Trump’s victory has concluded, and it may take some additional time before another bullish phase can commence.
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