The leading cryptocurrency Bitcoin (BTC) fell to the $ 90,000 level after a correction that reached the $ 100,000 limit.
While $100,000 is expected to open soon, Bitfinex analysts said in their latest report that Bitcoin is facing a short-term correction but is also ready for a breakout of $100,000.
Bitfinex analysts noted in their weekly Alpha report that Bitcoin has recovered despite an 8.64% decline last week and is continuing its upward momentum heading into December.
Analysts said this short-term correction was due to $135.1 million in outflows from spot ETFs last week and profit-taking by long-term investors who sold 508,990 BTC since September.
However, amid rising retail interest and outflows, along with stronger ETF inflows and increasing demand, especially from short-term investors, analysts said Bitcoin is well-positioned to break past the psychological $100,000 barrier.
Analysts stated that the rise in Bitcoin depends on short-term investors, and said, “If short-term investor demand can meet long-term investor sales, BTC can exceed $ 100,000.”
“November ended on a high note for Bitcoin despite a brief turmoil last week.
BTC suffered its biggest pullback since the US elections but quickly recovered, posting a record-breaking monthly close at $96,506.
Historically, December has been a volatile month for Bitcoin, with Bitcoin halving years also delivering exceptional average returns of 38.86%.
Given the current bull market dynamics, we believe Bitcoin is poised for further upside despite a potential short-term correction.”
*This is not investment advice.
