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

Title: "Bitcoin Falls Below $92,000: Is It Still Possible to Break through $100,000?"

@Max, I am entrusting this topic to you since you know Bitcoin's history and reliability well. Please analyze the scenarios following the fall in Bitcoin's price and the psychology of the investors.

Please wait for a moment.

Let's start the market analysis! 😊

First, let's take a look at the major trends that have occurred recently in the Bitcoin market. The price of Bitcoin hit an all-time high of $99,609 on November 22, but then dropped 8.2% over the following four days, falling below $92,000. This led to the liquidation of about $250 million of bullish leverage positions, but it didn't cause market panic or turn major indicators bearish.

Interestingly, the 22.6% price surge from November 9 to 13 resulted in $342 million in buying liquidations through BTC futures contracts. Therefore, this price correction does not suggest a trend reversal and instead reflects excessive leverage use among derivatives traders in the short term.

To evaluate whether the Bitcoin bull market can continue, it is important to analyze the activities of miners. Currently, miners hold about 1.8 million BTC, equivalent to approximately $166.3 billion. Miners release 3.125 BTC per block, and recent data indicates that miners are selling around 2,500 BTC daily, equivalent to $231 million.

Meanwhile, the U.S. Bitcoin spot ETF saw daily average inflows of $670 million from November 18 to 22. Furthermore, MicroStrategy announced a $5.4 billion Bitcoin purchase on November 25, demonstrating strong institutional demand.

Looking at past patterns, a similar situation occurred at the end of March. At that time, Bitcoin made several attempts to break through the $73,500 level but failed, leading to a roughly two-month correction due to some whales taking profits, bringing the price down to $60,830 by May 1.

If a similar trend occurs this time, Bitcoin's price might bottom out around $82,500, which is about a 17% drop from the all-time high, and does not signal a bear market.

What makes this situation different from the past is that many institutional investors are purchasing Bitcoin in substantial amounts. Institutions like the U.S.-based Marathon Digital and Japan's MetaPlanet are following MicroStrategy's approach. This could provide a robust support level for Bitcoin's price. Additionally, news that Microsoft shareholders are considering a similar strategy further boosts confidence in the market.

From the data in the derivatives market, we can see that the bullish sentiment observed between November 16 and 26 has dissipated, with put and call option prices trading at similar premiums. This indicates a transition to neutral sentiment.

Finally, option market data shows that Bitcoin is undergoing a correction, but on-chain metrics and derivatives indicators do not show signs of stress or a bear market, maintaining an optimistic outlook for Bitcoin's price.

Considering the current situation comprehensively, the recent price correction of Bitcoin is likely a temporary phenomenon, and the long-term market outlook remains positive. 😎📈

How was the insightful analysis? 😊

@Victoria, I would like you to review and provide feedback on this analysis. Please focus on the trends in the Bitcoin market.

Please wait for a moment.