Highlights:
- Bitcoin has bounced off the $93,015 support twice in 24 hours
- Bounce indicates a strong presence of buyers at $93,015
- Rally off the $93,015 support could push Bitcoin to $100k soon
Bitcoin has been in an accelerated selloff over the last 24 hours. In this period, Bitcoin has dropped by 5.45% to its current price of $93,344.87. This correction has shrunk Bitcoin’s market capitalization by 5.46% to $1.85 trillion.
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However, trading volumes have experienced a sharp increase in the last 24 hours. They are up by 54.97% in this period to hit a high of $88.28 billion. This indicates increased activity as panic sellers exit the market, while those who believe the correction is a buying opportunity are entering the market.
Selloff Triggered By Whales Booking Profits And Longs Liquidations
Those selling Bitcoin the most at current prices are whales who bought it many years back. People who got Bitcoin way before it ever hit $1000 are offloading some of their coins now that it has rallied over the years to its current price where it is only a few thousand dollars shy of the much-awaited $100k price level. There is also a segment of investors who bought in at around $57k and are also selling some of their Bitcoin to take some profit.
Things are getting heated! #Bitcoin long-term holders (LTHs) have come out in force, with selling pressure hitting -366K #BTC/month – the highest since April 2024. But who is actually selling? Let’s dig deeper: https://t.co/hr64gBGUCd
🧵👇 pic.twitter.com/OpsayTaNsf— glassnode (@glassnode) November 25, 2024
Over $300 Million Overleveraged Longs Liquidated
CoinGlass data shows that over-leveraged longs are being cleared by the market in the current correction. In the last 24 hours alone, $337 million in leveraged longs have been liquidated. This is quite expected because as the market heats up, greed starts to creep in, and traders over leverage in anticipation of even higher prices.
These liquidations have served to add to the selling pressure on Bitcoin in the last 24 hours. Some analysts predict that the selloff triggered by these long liquidations could see Bitcoin drop to around $90k where a significant number of buyers are waiting to buy the dip. That said, until there is clear upside momentum, most investors are waiting cautiously for Bitcoin to give direction. This is where the charts come in as a guide to Bitcoin’s potential price direction.
Technical Analysis – Bitcoin Price Holds Key Support as Bulls Re-Enter Market
From the charts, Bitcoin appears to have found some strong support at $93,015 after a sustained correction in the last 24 hours. Bitcoin has bounced off the $93,015 support twice in the last 24 hours, a signal that there are substantial buying volumes at this price level. If there is a sustained rally of the $93,015 support, the next key level to watch would be $94855, now a critical resistance level. A rally through this price level could see Bitcoin retest its recent highs and potentially rally through the $100k price level.
On the other hand, if bears take control and push Bitcoin through the $93,015 support, then a correction to around $90k could follow. This could either be followed by a strong bounce back or a further correction to around $88k.
$BTC Day 21 of the Cycle. Back at the 10dma generally a good spot to bounce and continue the uptrend.
Generally the midpoint (around day 30) there is weakness, so if no bounce here, $86-88k likely for the midpoint over next 7-10 days.
— Bob Loukas 🗽 (@BobLoukas) November 25, 2024
The $93,015 support is more likely to hold, indicating Bitcoin could potentially head higher from this level. The fact that Bitcoin has bounced off this support twice is an indicator that bulls are quite strong at this price level. With anticipation of Bitcoin rallying to prices as high as $200k still high in the market, the odds are quite high that more buyers could come in at current prices in anticipation of even higher prices.
Institutional Buyers Fueling Optimism in Bitcoin
Confidence in Bitcoin, especially during this correction, could also be boosted by the moves of big institutions. MicroStrategy, one of the largest institutional buyers of Bitcoin, has invested an additional $5.4 billion in Bitcoin, acquiring 55k Bitcoin.
This brings the company’s total Bitcoin holdings to 386,700 Bitcoin. Such buys could trigger FOMO and see Bitcoin rallying to a high of $200k or more in the foreseeable future.
MicroStrategy has acquired 55,500 BTC for ~$5.4 billion at ~$97,862 per #bitcoin and has achieved BTC Yield of 35.2% QTD and 59.3% YTD. As of 11/24/2024, we hodl 386,700 $BTC acquired for ~$21.9 billion at ~$56,761 per bitcoin. $MSTR https://t.co/79ExzXk4UM
— Michael Saylor⚡️ (@saylor) November 25, 2024
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