Bitcoin could still see a correction of up to 30% during its uphill battle to conquer the six-figure price tag for the first time.
The Bitcoin (BTC) price is currently down over 7% from its all-time high of around $99,800, breached on Nov. 22, Cointelegraph data shows.
BTC/USD 1-week chart. Source: Cointelegraph
While most analysts agree that topping $100,000 is only a matter of time, some analysts expect a deeper retracement before the milestone high.
Bitcoin could correct as deep as 30% before resuming its bullish run, according to Ryan Lee, the chief analyst at Bitget Research. The analyst told Cointelegraph:
“In its bid to cross the psychologically important $100,000 price level, investors will need to deal with intense corrections. Historical data trends show that Bitcoin may still correct as much as 30% before it reaches its cyclical top.”
While historical chart patterns aren’t always accurate in predicting future price action, a potential 30% correction from $99,800 would hypothetically tank Bitcoin price below $70,000.
Bitcoin breaching $100,000 is only a matter of time, and ETF inflows
While temporary corrections are an organic part of crypto bull markets, most analysts don’t expect the current correction to be long-lived.
This is because Bitcoin is set to surpass the $100,000 valuation in the short term, according to Anndy Lian, author and intergovernmental blockchain expert.
He told Cointelegraph:
“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 global adoption accelerates and institutional interest deepens, the $100,000 mark symbolizes not just a price, but a paradigm shift in how we perceive and utilize money.”
Sluggish investments in the United States spot Bitcoin exchange-traded funds (ETFs) have also contributed to Bitcoin’s price slump.
United States-based spot Bitcoin ETFs logged two days of net negative outflows, with net cumulative outflows of over $122 million on Nov. 26, Farside Investors data shows.
Bitcoin ETF Flow (USD, million). Source: Farside Investors
While slowing ETF inflows are common at the end of the month, a resurgence in ETF buying will help catalyze Bitcoin’s next leg up, according to Bitfinex analysts, who told Cointelegraph:
“Now that ETF flows appear to have hit a bump in the road and MicroStrategy purchases seem to have paused, it is quite normal for the price to undergo some correction and seek out a new supply-demand equilibrium as marginal buying ends.”
While Bitfinex analysts expect a correction of up to 20%, the analysts are confident that MicroStrategy’s latest $2.6 billion note sale and renewed ETF buying will bolster cryptocurrencies to new all-time highs leading into 2025.
Magazine: Is Bitcoin heading back to $90K? Solana ETFs, and more: Hodler’s Digest, Nov. 17 – 23
