Bitcoin (BTC) has finally entered its price correction phase after surging 45% in the last 30 days as it went below $93,000 on Tuesday, November 26. Now the question remains how low will it drop?
Bitcoin went down to $92,775 when the markets opened today. This price drop takes it to a six-day low point and confirmed speculations of a price correction.
The much-anticipated price correction has caused the price to drop 7% from the all-time high of $99,845 seen on November 22.
However, the price correction doesn't seem to have that much of an impact as Bitcoin is already bouncing back to $95,000 in the Asian market on November 26. This has kept its monthly price gain to 40%.
Now analysts are predicting how far this pullback will take the BTC price down. This comes at a time when MicroStrategy has purchased a whopping 55,500 BTC worth around $5.4 billion.
Analyst Mags revealed that when he said Michael Saylor just bought $5.4B of Bitcoin, “ETFs continue to accumulate, who is selling that we’re still below 100k?”
Another analyst DonAlt said that it feels like Michael Saylor’s MicroStrategy wanted to “ break $100k and failed” and now the crypto market is just waiting “ for him to buy more”.
As per Bitcoin pioneer Adam Back, this move by MicroStrategy is confusing as to why people are selling BTC in volume below $100,000.
Senior ETF analyst Eric Balchunas pointed out towards the obvious as seen in the on-chain data that long-term Bitcoin holders are raking in profits
According to a post by crypto analyst James Check, long-term Bitcoin holders distributed $60 billion worth of the country in the last 30 days, the heaviest profit-taking in this cycle.
Rekt Capital drew a comparison with three Bitcoin price cycles in the past to point out that the coin experienced a 6-7 weeks price discovery phase ahead of large corrections.
In the current cycle, we have just seen 4 weeks of price discovery which suggests a drop to the $80,000 range is likely.
As of November 26 afternoon, BTC was down 5.46% in the last 24 hours to trade at $93283, while the trading volume has increased nearly 55% to touch $88.43 billion and the market cap declined to $1.84 trillion.
