Bitcoin's path to the psychological level of $100,000 has 'stalled' amid $430 million long liquidations and increased concerns regarding the upcoming November 27 inflation data and FOMC protocol. This conclusion was reached at CryptoQuant.
Asia Color — 26 Nov 24
1/ Bitcoin dips below $93K — a $430M liquidation event coincides with a $438METF outflow on Monday, snapping a five-day streak of inflows. Meanwhile, MicroStrategy slips 4.4% after its record $5.4B #BTC purchase last week.— QCP (@QCPgroup) November 26, 2024
Experts also mentioned an outflow from BTC-ETF of $438 million.
The situation could be exacerbated by the holiday in the U.S. falling on November 28 (Thanksgiving Day).
Experts noted that the trigger for the reversal was MicroStrategy's purchase of 55,500 BTC for $5.4 billion.
Implied volatility has shifted towards puts, 'as the market takes a breather,' analysts concluded.
CryptoQuant CEO Ki Young Ju noted that the current pullback cannot be called 'excessive'. Quotes are retreating to levels of last week.
Even in a parabolic bull run, #Bitcoin can see -30% pullbacks.
Such corrections repeatedly occurred during the 2021 price discovery from 17K to 64K.
This isn’t a call for a correction—just manage your risk and avoid panic selling at local bottoms. We’re in a bull market. pic.twitter.com/B5zpk7P0N9— Ki Young Ju (@ki_young_ju) November 26, 2024
‘After the elections, the market became extremely overbought due to excessive leverage, making a pause inevitable,’ explained the expert.
He reminded that even in a parabolic bull run, Bitcoin is prone to 30% pullbacks. Such corrections occurred multiple times in 2021.
‘Just manage your risk and avoid panic selling at local bottoms,’ recommended CryptoQuant CEO.
Colleagues of Ki Young Ju noted that profit-taking pressure has not peaked, which was observed after the previous ATH in March. This leaves room for further price increases.
FOMO-Driven Rallies and Risk of Profit-Taking
“The green bars showing STH selling in profit have yet to reach levels seen during the previous $72.4k peak. This suggests that profit-taking pressure hasn’t peaked, leaving room for further upward movement in price.” – By… pic.twitter.com/Edo3nvjwUN— CryptoQuant.com (@cryptoquant_com) November 25, 2024
Analysts believe that if the momentum continues, the price could rise to $100,000 on FOMO demand.
