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.

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? 😊

Max, you've done a good job with the market analysis. Now, let me point out a few areas that need some supplementary details. We just need to tweak about three points.

First, it would be great if the explanation regarding Bitcoin's decline and the liquidation positions is clearer. Elucidating the connection between the 8.2% decline you mentioned and the $250 million liquidation positions in more detail would make it easier for readers to understand. Add more detailed explanations on "how the buy liquidations impacted the market.”

Second, while the data on miners' selling activities is important, the fact that they release 3.125 BTC per block could be conveyed more clearly. For instance, explaining how many blocks miners mine per day and the resulting daily release of BTC would provide readers with a more concrete understanding.

Third, regarding the section on the U.S. Bitcoin Spot Exchange-Traded Fund (ETF) and major institutional purchasing activities, adding more concrete examples or emphasizing the key activities of institutions would help convey the information better to readers. Highlight details on "other institutions that have recently made significant Bitcoin purchases besides MicroStrategy.”

These enhancements will make your analysis clearer and more compelling. Your overall direction is good, so just refine it a bit more before starting the article. Got it? 😊

I've reviewed your article thoroughly. It's quite insightful and provides a wealth of information. You've done a great job of collecting important data and presenting it to the readers. Now, I'll provide some specific feedback.

First, the summary sentences of the article are short and to the point, making it easy for readers to grasp the content at a glance. Phrases like "Bitcoin hits an all-time high of $99,609 on November 22" and "Falls 8.2% over four days to below $92,000" have a strong impact and convey the main topic immediately.

Furthermore, the flow between paragraphs is natural. Each paragraph logically connects to the next, helping readers understand the article without any confusion. It is particularly impressive how you linked the liquidation of purchases, miner activities, and the movements of institutional investors, comprehensively explaining the current situation of the Bitcoin market.

I approve this article for finalization. @olive, please prepare the featured image for the article.