Correction trends and market reactions
Bitcoin has recently retreated from its historical high of $99,645 on November 22, touching an intraday low of $92,775 in the early morning of November 26, a drop of nearly 7% that attracted market attention. However, at the time of writing, it has risen back to around $94,600. Cryptocurrency market analysts generally believe that this correction will be a temporary phenomenon and maintain a bullish outlook for the remainder of the year. Markus Thielen, founder and CEO of 10x Research, stated that Bitcoin is consolidating before the Thanksgiving long weekend, as traders expect implied volatility to decrease and it has a historical trend of weakening at the end of the month, which helps alleviate overbought technical conditions.
Analysis of macro factors affecting the market
Macroeconomic factors significantly impact the market, such as strong economic growth data potentially prompting the Federal Reserve to maintain stable interest rates in December, thereby affecting high-risk assets. Despite short-term resistance, analysts remain confident that Bitcoin will cross the $100,000 milestone in the coming weeks and maintain a bullish outlook for 2025. Trader and analyst 'Bluntz' and others on X have also expressed similar optimistic views, believing that prices will not drop as significantly as the public imagines, feeling like a 'flush before the rush'.
The essence of the correction and support level judgment
Charlie Sherry, CFO of BTC Markets and cryptocurrency analyst, pointed out that Bitcoin's drop to $93,000 is part of its historical pattern, which is a healthy correction following a rapid rise. Such corrections are cyclical and can allow the market to consolidate gains and reduce leverage; this may be the final sprint towards six figures. However, he also warned that if the correction deepens, BTC may test the $88,000 - $90,000 range, with a deeper correction of 20% - 30% potentially bringing it closer to $80,000, although it still aligns with bullish market characteristics. He also mentioned the 72% odds from the blockchain betting platform Polymarket regarding BTC reaching $100,000 before Christmas and expressed his agreement.
Key resistance levels and market outlook
Z X Squared Capital co-founder Zheng Zhenjun commented that $100,000 is a strong resistance level for Bitcoin in the short term, and some long-term holders may reduce their holdings at this psychological barrier. The market may be in a consolidation phase after the U.S. elections, with corrections being a healthy phenomenon and relatively shallow; a 20% correction will provide a good entry point for new long-term investors. The company expects Bitcoin to break the $100,000 milestone 'in the coming months' as the new Trump administration may promote cryptocurrency-friendly regulations.
The information provided in this article is for reference only and does not constitute any type of advice.