Source: Golden Ten Data

Last week, Bitcoin almost surpassed the $100,000 mark, and the crypto market waited with bated breath, but ultimately failed to achieve this historic milestone as momentum stalled and quickly fell back. breakthrough.

On Friday, the price of Bitcoin hit an all-time high of $99,588, but fell back before breaking through the six-digit mark. As of 13:00 on Wednesday, Bitcoin was hovering near $92,500, having fallen by more than 5% this week. Matt Mena, crypto research strategist at 21Shares, said $100,000 is a psychologically meaningful selling point for investors who have been holding Bitcoin since the last bull run.

Bitcoin daily chart

In an interview, he pointed out that Bitcoin holders may have foreseen a correction near this price and therefore chose to sell some of their positions to lock in gains. He also mentioned that this behavior also occurred at Bitcoin’s previous highs.

“A similar pattern emerged in March this year when Bitcoin was hovering near its 2021 all-time high of $69,000. Bitcoin hovered at that price for nearly seven days before finally breaking out … As prices approached this level, many participants in the previous cycle began taking profits as they anticipated a possible pullback.”

Other analysts believe that Bitcoin. The depth of the pullback may also be attributed to other factors. Alex Kuptsikevich, chief market analyst at FxPro, mentioned that the easing of geopolitical tensions between Lebanon and Israel has weakened investor demand for safe-haven assets such as Bitcoin.

Matt Mena believes that if the price of Bitcoin continues to fall, it may fall to $80,000. He said options traders focused on cryptocurrencies also support this view, with a large number of options contracts expiring in December betting on Bitcoin falling to $80,000.

“The $80,000 support level may be the limit of this pullback, which may actually be good for the health of the market...Bitcoin will often retest previous support levels to consolidate Upside strength and clearing out leveraged positions and short-term speculators ”

However, Bitcoin will first test a few support levels above this level before falling to this level. Mena noted that the next key support level below $90,000 is $87,000. Standard Chartered predicts that Bitcoin may resume its rise after falling to this level. Mena still expects Bitcoin toA rebound towards the end of the year and the holiday season could push Bitcoin towards the $110,000 to $120,000 range.

“At holiday gatherings, investors often share their enthusiasm for Bitcoin and cryptocurrencies with family and friends, discuss their gains and demonstrate profits and losses... which can spark curiosity and interest, attracting new investors into this space. We have seen this happen many times over the past few years.”

He also predicts that crypto investors will be in the next year. There was a "front-running" behavior before the presidential inauguration in November, which is similar to the situation before the November election day. At the time, investors were driving crypto prices higher on excitement over Trump’s eventual victory.

“This early activity could generate the momentum needed to break $100,000.”

Investors react to Trump’s second Tenure shows great expectations. The president-elect has openly supported cryptocurrencies, hinted at the possible creation of a Bitcoin reserve, and is understood to be screening candidates for cryptocurrency-related White House positions.