Bitcoin Drops 8% After All Time High: Is $100K Still Possible?

Bitcoin Price Hits $99,609 on November 22, Then Drops 8.2% Bitcoin Drops Below $92K: Is $100K Still Within Reach? [Unblock Media] The recent Bitcoin (BTC) market witnessed noticeable volatility. On November 22, the Bitcoin price reached an all-time high of $99,609, but then dropped 8.2% over the next four days, falling below $92,000. This led to the liquidation of bullish leverage positions worth approximately $250 million. This liquidation exerted short-term downward pressure on the market, triggering additional selling as some investors were forced to liquidate. However, the market did not enter a state of panic, and key indicators remained stable. Furthermore, a 22.6% price surge from November 9 to 13 resulted in $342 million worth of long liquidations through BTC futures contracts. Therefore, this recent price adjustment does not indicate a trend reversal but reflects excessive leverage usage among derivative traders in the short term. Analyzing Bitcoin miners' activities is essential. Currently, miners hold about 1.8 million BTC, equivalent to roughly $166.3 billion. Each block mined releases 6.25 BTC. With about 144 blocks mined daily, approximately 900 BTC are generated per day. Recent data indicates miners are selling about 2,500 BTC daily, translating to $231 million worth of Bitcoin. While this might cause temporary market declines, the long-term impact remains limited. Meanwhile, the U.S. Bitcoin spot ETF recorded an average daily inflow of $670 million from November 18 to 22. Additionally, MicroStrategy announced a $5.4 billion Bitcoin purchase on November 25, demonstrating strong institutional demand. Companies like Marathon Digital, Square, and Grayscale have also made substantial Bitcoin purchases recently, positively influencing the market sentiment. Looking back at past patterns, a similar scenario occurred in late March. Back then, Bitcoin attempted multiple times to surpass the $73,500 mark but failed, leading to a roughly two-month correction with prices dipping to $60,830 on May 1 due to profit-taking by some whales. If a similar pattern unfolds, Bitcoin might find a bottom around $82,500, a roughly 17% drop from its peak, which wouldn't signal a bear market. The key difference this time is the significant Bitcoin purchases by various institutional investors. Institutions like Marathon Digital in the U.S. and Japan's MetaPlanet are following MicroStrategy's approach, potentially providing a strong support level for Bitcoin prices. Additionally, reports that Microsoft shareholders are considering a similar strategy further bolster market confidence. Data from the derivatives market shows that the bullish sentiment that appeared between November 16 and 26 has faded, with put and call options trading at similar premiums, indicating a shift to a neutral sentiment. Lastly, while options market data shows Bitcoin undergoing a correction, on-chain metrics and derivatives indicators do not show signs of stress or a bearish market. Thus, the outlook for Bitcoin’s price remains optimistic. Given the current situation, doubts about Bitcoin’s ability to reach $100K may grow. However, the current price correction is likely a temporary phenomenon, with analysis suggesting a positive long-term market outlook for Bitcoin.