Will Thanksgiving Trigger a $BTC Drop Below $90K?
As Thanksgiving approaches, fear of a “Thanksgiving Massacre” in Bitcoin prices looms among investors. This concern arises as Bitcoin consolidates following its recent all-time high (ATH) of $99.6K, fueling speculation about a potential crash.
Just six days ago, Bitcoin reached its ATH, nearly touching $100K. However, a 9% drop brought the price down to $91K before recovering slightly. Despite this, analysts are debating whether Thanksgiving could see BTC dip below $90K, echoing the infamous 2020 Thanksgiving Day crash.
What is the Thanksgiving Day Massacre?
Bitcoin has experienced significant crashes over its 15-year history, but one of the most memorable occurred during Thanksgiving in 2020. That day, BTC dropped over 17% within hours, plummeting from $19,500 to $16,200. While shocking, the crash offered a massive buying opportunity—investors who bought the dip gained up to 480% within months.
Current Market Sentiment: Crash or Consolidation?
Today, Bitcoin is up 35% for the month, showing resilience despite its recent consolidation. Analysts believe the likelihood of a Thanksgiving crash is slim due to stronger market fundamentals, including support from institutional investors, the success of Bitcoin ETFs, and reduced selling pressure from long-term holders.
Key Points:
• The Thanksgiving 2020 crash was caused by panic and selloffs but resulted in a swift recovery.
• Analysts see today’s market consolidation as a healthy correction rather than a precursor to a major crash.
• Historical data shows that even if a Thanksgiving dip occurs, Bitcoin typically rebounds quickly and often sets new highs shortly after.
Looking Ahead: Will BTC Hold Above $90K?
While fears persist, experts argue that Bitcoin’s current strength and improved market dynamics make a sharp Thanksgiving crash unlikely. Even if BTC experiences a dip, recovery is expected to be faster, with potential for a new ATH before year-end.