Holiday Hype: Bitcoin Set For Thanksgiving Rebound To $99,000, Analyst Says

by

As a seasoned researcher with over a decade of experience in the financial markets, I have witnessed countless bull and bear cycles. The current rally of Bitcoin towards the $100,000 mark is undeniably intriguing, yet I remain cautiously optimistic given the mixed signals we’re seeing from analysts.

On Thanksgiving Day when U.S. markets were closed, Bitcoin (BTC) regained the level of approximately $96,000, moving nearer to its record high of $99,500 and the significant landmark of $100,000.

Analysts Skeptical Of Sustaining Momentum Toward $100,000

The changes in Bitcoin’s value lately can be linked to a mix of short-term selloffs from long-time investors and overall market conditions. As pointed out by Andre Dragosch, head of research for Europe at Bitwise, a large quantity of Bitcoin has been dispersed during the current surge, resulting in an increase in supply.

Even though Bitcoin has shown a surge recently, some experts are still wary about its potential to surpass the $100,000 mark. David Morrison, a senior market analyst at Trade Nation, pointed out that this significant psychological level appears to pose a challenging obstacle for any further price increases.

As a crypto investor, I’ve noticed a growing optimism about Bitcoin’s recent spike, but I can’t help but recall the words of George Milling-Stanley, Chief Gold Strategist at State Street Global Advisors. He cautions that this surge might be giving us a “misleading sense of safety.” In other words, it seems we should remain vigilant and not let our guard down just yet.

Milling-Stanley highlighted that a significant number of investors are attracted to Bitcoin predominantly for potential profit, rather than because they see inherent worth or usefulness in the primary digital currency on the market.

Galaxy Digital CEO Warns Of Potential Bitcoin Correction

The introduction of spot Bitcoin ETFs that offer options trading has introduced an additional complexity in the market’s behavior. With these options, investors can make bets on Bitcoin’s price fluctuations using smaller amounts of money than they would need for direct Bitcoin purchases.

Boosting the level of borrowed money (leverage) can magnify possible profits as well as risks, a point made by Mike Novogratz, CEO of Galaxy Digital. He predicts that a market adjustment might occur due to the substantial use of leverage within the cryptocurrency sector.

In the midst of conflicting indicators, certain experts foresee a possible surge in prices around Thanksgiving, which they refer to as a “Thanksgiving rally.” Crypto expert Ali Martinez has highlighted a significant area of demand at $93,580. This level is supported by approximately 667,000 investors who collectively purchased close to 504,000 Bitcoins. It’s essential for this support level to hold strong to prevent these investors from selling en masse.

According to Martinez’s positive prediction, the festive atmosphere might spark discussions about Bitcoin within families, possibly rekindling curiosity and financial commitment in the digital currency. Earlier on Thursday, the analyst also pointed out:

This evening, individuals involved in cryptocurrency will likely share information about Bitcoin (BTC) with their families, potentially leading to an uptick or “Thanksgiving rally”. Given this development and the strong technical indicators, I believe BTC is on track to reach $99,000 again.

Currently, the most prominent cryptocurrency is being traded at approximately $96,780. Over the past 14 days, it has seen a 10% increase. However, its gains are less than what was reported in the previous two weeks due to a recent correction that took it towards $91,000 on Tuesday.

Read More

2024-11-29 09:40