Bitcoin (BTC) Price Faces Midterm Correction Below $100K amid High Demand from Institutional Investors

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As a seasoned analyst with over two decades of experience in the financial markets, I have witnessed numerous market cycles and trends. The current Bitcoin price action is reminiscent of the 2017 bull run, albeit on a grander scale. However, it’s important to remember that every market has its unique characteristics, and Bitcoin’s volatility can often defy traditional market norms.

Bitcoin, represented by BTC, reached an all-time high of over $108K earlier within the last 24 hours but has since experienced decreased bullish momentum. The flagship coin dropped approximately 3.4% in the past 24 hours, trading around $103,741 on Wednesday, December 18, during the mid-London session. This is a slight dip from its peak, showing less enthusiasm among investors at this time.

Due to increased fluctuations in Bitcoin’s value, approximately $414 million was withdrawn from the cryptocurrency market, with about $333 million affecting long-term traders. With significant monetary policy revisions expected in the U.S. today, as well as in the UK and Japan on Thursday, many crypto investors have been seeking refuge to avoid potential future volatility in Bitcoin’s value.

Regardless, there’s a noticeable anticipation that Bitcoin’s bull run might persist through the final fortnight of 2024, as evidenced by the futures market. As of now, the total value and open interest (OI) in Bitcoin have been rising together, pushing the OI to surpass $68 billion for the first time since the Satoshi era.

BlackRock Leads Whale Investors in Bitcoin Accumulation

Over the past year, interest in Bitcoin has consistently stayed strong, but it’s seen a significant surge since President-elect Donald Trump, known for his pro-cryptocurrency stance, was re-elected last month. Since November 5th, there’s been a drop of more than 190,000 Bitcoins from centralized exchanges, leaving approximately 2.24 million Bitcoins in circulation at the moment.

Over the past three months, BlackRock’s IBIT-led US spot Bitcoin ETFs have emerged as the primary purchasers of Bitcoin. Additionally, MicroStrategy Inc (NASDAQ: MSTR) has been spearheading a wave of public and private companies in incorporating Bitcoin into their financial holdings.

On December 17th (Tuesday), U.S. Bitcoin ETFs collectively received approximately $494 million, bringing their total accumulated inflow to around $37 billion. BlackRock’s IBIT saw the largest cash influx on Tuesday, amounting to about $741 million, and now manages over $58 billion in assets.

On Tuesday, Fidelity’s FBTC and Grayscale’s GBTC experienced the largest withdrawals of approximately $128 million and $84 million each.

Midterm Expectations

In the last two years, the value of Bitcoin has shown remarkable growth, coinciding with a surge in significant stock markets and Gold prices. As per crypto expert Ali Martinez’s analysis, Bitcoin’s price might replicate a similar pattern to the 2017 and 2020-2021 bull market trends over the next few months.

If Bitcoin’s price trajectory follows its patterns from 2017 and 2020, we can expect several significant corrections after reaching certain milestones. First, a temporary dip might occur around $110,000, followed by a steeper correction at approximately $125,000. A more substantial correction could take place near $150,000, and the bull market may conclude when Bitcoin reaches $220,000.

— Ali (@ali_charts) December 18, 2024

Consequently, the crypto expert anticipates that Bitcoin’s price will undergo multiple adjustments as it climbs towards an estimated peak of approximately $220,000 in 2025. Additionally, long-term investors have been speeding up their selling to redistribute their earnings into the altcoin market, aiming for higher profit margins.

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2024-12-18 13:00