👀 Bitcoin price falls below a key level, but market analysts remain optimistic about its upward potential🕵️♂️
Since this Monday, the price of Bitcoin has experienced a drop of over $3,000. The market initially expected it to break through the important psychological level of $100,000, but it appears that it couldn't even hold above $98,000, further dropping to around $95,000.
This drop in Bitcoin's price coincided with media reports that large Bitcoin holders (whales) transferred significant assets to Binance exchange, presumably to lock in profits. However, at the same time, some positive news has emerged in the market.
The price of Bitcoin is often influenced by the trading activities of "whale" investors, as their large buy and sell orders can quickly change market trends. On-chain analysis platforms are closely monitoring these behaviors to predict significant fluctuations in Bitcoin's price.
According to a post by Lookonchain, a super whale accumulated over $780 million worth of Bitcoin from March to October, with an average cost of around $66,953. Now that the Bitcoin price has risen by nearly 50%, this anonymous whale has transferred 1,000 BTC to Binance, likely in preparation for a sale.
On the other hand, analyst Ali states that bulls are currently in the lead. If Bitcoin can hold above $96,175, the price is expected to surge towards $100,000. This price range has accumulated over 1 million Bitcoin addresses, providing strong support at this level.
Although Bitcoin's price has fallen below the key support level of $96,175, according to Glassnode's analysis by Rafael, there is no need for excessive concern.
He mentioned that if the relative unrealized profit index of long-term Bitcoin holders exceeds 0.9, it usually indicates that the market is overheated, and many investors have already gained paper profits.
However, the current index is only 0.74, below the historical overheating threshold, so Rafael believes there is still room for Bitcoin to rise further.
Despite the drop in Bitcoin's price, market analysts do not have a pessimistic view of its future trend.
💬 What do you think? Do you believe this price adjustment of Bitcoin is a short-term fluctuation or a long-term trend shift? Leave your thoughts in the comments!
