Bitcoin Price Retraces to $94,000 Amid Speculation of 25% Drop
After reaching a new all-time high of $99,600 last Friday, the Bitcoin price has retraced to $94,000. This pullback follows a significant three-week uptrend that saw a 40% increase after Donald Trump’s election on November 5.
Bitcoin Price May Drop To $70,500
Market expert Rekt Capital expressed concerns on social media platform X (formerly Twitter), comparing current trends with historical price cycles. He noted that during the 2013 cycle, Bitcoin experienced six weeks of rising prices before its first major correction in Week 7. In 2017, a seven-week rally ended with a 34% retracement in Week 8, while the 2020/2021 cycle saw a six-week rally followed by a 16% pullback. Currently, Bitcoin is in the fourth week of its uptrend.
These historical patterns suggest a potential retest of lower support levels within the next two to four weeks, with past corrections averaging substantial declines. A 25% pullback could bring the price down to around $70,500, a level not seen since the election day.
Who’s Selling Bitcoin?
Data from Glassnode indicates that long-term holders (LTHs) have increased their selling activity, recording a significant selling pressure of -366,000 BTC per month, the highest level since April 2024. The 6 to 12-month cohort among LTHs is leading this trend, averaging 25,600 BTC sold daily. This group acquired their coins at an average cost basis approximately 71% lower than the current market price of around $57,900.
The rise in selling pressure suggests a potential shift in market dynamics. With Bitcoin nearing $100,000, some investors may opt to take profits rather than endure potential volatility.
Currently, Bitcoin trades at $94,000, reflecting a nearly 5% retracement over the past 24 hours. Despite this pullback, Bitcoin continues to show gains across all time frames, with a notable 150% surge year-to-date.
Featured image from DALL-E, chart from TradingView.com