Bitcoin Approaches $100,000 Mark Amid Thanksgiving Trading Activity
As US markets closed for Thanksgiving Day, Bitcoin (BTC) recovered the $96,000 mark, approaching its all-time high of $99,500 and the $100,000 milestone.
Analysts Skeptical Of Sustaining Momentum Toward $100,000
Fluctuations in Bitcoin's price have been linked to profit-taking by long-term holders and broader market dynamics. Andre Dragosch, head of research for Europe at Bitwise, noted that significant amounts of Bitcoin were distributed during the recent rally, leading to increased supply.
Despite the rally, some strategists express caution regarding Bitcoin's ability to surpass the $100,000 barrier. David Morrison, a senior market analyst at Trade Nation, indicated that this psychological threshold presents challenges for further price gains. George Milling-Stanley, chief gold strategist at State Street Global Advisors, highlighted concerns that the surge may create a “false sense of security,” noting many investors are attracted to Bitcoin primarily for capital gains rather than intrinsic value or utility.
Galaxy Digital CEO Warns Of Potential Bitcoin Correction
The launch of options on spot Bitcoin exchange-traded funds (ETFs) has introduced additional market dynamics, allowing investors to speculate on Bitcoin's price movements with less capital. Galaxy Digital CEO Mike Novogratz warned that the increased leverage could lead to a market correction due to high levels of leverage within the crypto community.
Amid mixed signals, some analysts anticipate a “Thanksgiving rally.” Crypto analyst Ali Martinez identified a key demand zone at $93,580, where approximately 667,000 addresses collectively purchased nearly 504,000 Bitcoin. Maintaining this support level is essential to prevent mass selling from these holders. Martinez suggested that holiday discussions about Bitcoin could stimulate renewed interest and investment, stating:
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, Bitcoin is trading at $96,780, up 10% over fourteen days, but significantly lower than the gains reported in the previous two weeks following a correction toward the $91,000 level on Tuesday.
Featured image from DALL-E, chart from TradingView.com