Analysts Warn of Correction for Bitcoin as It Strengthens Against Gold! Share New Price
Predictions!
Bitcoin (BTC) has had an incredible rise in recent days, exceeding $ 89,000 and rising to the $ 90,000 mark.
While this rise increased investors' expectations of an increase, QCP Capital analysts stated that Bitcoin futures-based returns reached a 7- month peak and leveraged transactions increased.
Analysts warned investors about a possible correction, stating that futures-based returns historically do not last very long and that such increases are followed by corrections.
With Bitcoin hovering just below the critical $90,000 level, analysts noted that the base rate at the end of November had exceeded 18%, saying:
"Increased leverage and high base yields are at 7-month highs. While Bitcoin remains structurally bullish, we caution against any pullbacks, particularly from leveraged liquidations, because historically such increases in base yields have not lasted very long."
Analysts warned of a pullback due to leveraged positions, but added that there was strong demand in the options market, with significant interest in expiry prices of $110,000 and $120,000.
Bitcoin Could Hit $97,000!
QCP Capital analysts recently noted that Bitcoin solidified the 'digital gold' narrative with a 30% increase after the election.
Analysts noted that Bitcoin has increased by 30% since the US elections, while gold has fallen by 5%, strengthening BTC's role as "digital gold".
Analysts have said a 1% reallocation from gold to Bitcoin could send BTC to $97,000 as investor interest and leverage intensify with calls for greater upside potential.
"Recently, capital has been reallocated from traditional safe havens like gold to BTC.
Currently at $1.73 trillion, Bitcoin's market cap recently surpassed silver's but remains well below gold's $17.5 trillion.
Even if 1% of the capital flowing from gold into BTC, it could push Bitcoin to around $97,000."
