$BTC Finally, the long-awaited pullback period has arrived. The most pressing question for everyone right now is: how far will this pullback go?
During Tuesday's early Asian trading session, Bitcoin briefly fell to a six-day low of $92,775, a 7% drop compared to the historical peak of $99,845 set on November 22. However, the asset quickly rebounded, approaching $95,000 by the Asian trading session on November 26. Despite the pullback, Bitcoin's increase this month remains close to 40%.
Analysts are having intense discussions about the depth of the decline during this pullback.
Notably, this pullback coincides with Michael Saylor's MicroStrategy company making another large-scale purchase of Bitcoin. On November 25, the company spent $5.4 billion to acquire 55,500 Bitcoins, further expanding its already considerable Bitcoin holdings.
This has triggered speculations among analysts:
Mags stated: "Saylor just bought $5.4 billion worth of Bitcoin, and exchange-traded funds are still continuing to buy. Who is selling as we have yet to break through the $100,000 barrier?"
DonAlt pointed out: "It feels like Saylor really wants to break through the $100,000 barrier but has not succeeded, and now the market is just waiting for him to continue buying."
Bitcoin pioneer Adam Back raised the question: "At this stage of market development, who is selling Bitcoin in large quantities below the $100,000 price point?"
Bloomberg ETF analyst Eric Balchunas provided more background information, citing on-chain data that indicates long-term holders are taking profits, stating: "The calls are coming from inside — it’s long-term holders selling to realize profits."
Analyst James Chek reported that long-term holders have sold $60 billion worth of Bitcoin in the past 30 days, marking the largest profit-taking event of this cycle.
"This is the most severe profit-taking situation we have seen so far in this cycle," Chek noted.
During the price discovery phase, it is not uncommon for such investors to cash out at market peaks.
Price corrections are a natural part of market cycles, and Bitcoin's price history provides us with insights into subsequent trends.
Analyst Reket Capital observed that in previous bull market phases, Bitcoin typically remains in the price discovery phase for 6-7 weeks before a significant pullback occurs:
In 2013, Bitcoin rose for 6 consecutive weeks, experiencing a pullback in the 7th week.
In 2017, Bitcoin rose for 7 consecutive weeks, experiencing a 34% pullback in the 8th week.
In 2020-2021, a similar pattern emerged again, with pullbacks following sustained increases.
This time, Bitcoin has been in the price discovery phase for 4 weeks, indicating a potential further decline in the future, possibly testing support in the high range of $80,000 before resuming an upward trend.
Historical patterns indicate that the current pullback is merely a part of a long-term upward trend. Everyone is closely watching Bitcoin's next steps, and the $100,000 barrier is still within reach.
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