Bitcoin’s price recently took a sharp dip, falling by over 5.6% to $92,774 as of November 26, following its historic high of $99,000 on November 22. While the decline has raised concerns among some investors, analysts believe this price correction is part of the broader market dynamics and reflects behavior from long-term holders, not a retreat by institutional investors or ETFs.
Eric Balchunas, a senior ETF analyst at Bloomberg, pointed out that the selling pressure comes not from institutional investors but from Bitcoin’s long-term holders. Balchunas explained, “I see a lot of crypto traders frustrated that despite massive purchases from entities like MicroStrategy, Bitcoin’s price doesn’t see an immediate rise. This is the same situation I see with ETFs after large flows. The call is coming from inside the house—it’s the long-term holders who are adjusting their positions.”
On-chain data reveals that long-term holders were responsible for selling 128,000 BTC, while U.S. spot ETFs absorbed 90% of the selling pressure. Kyle du Plessis, a prominent crypto trader, noted on X (formerly Twitter), “Strong institutional demand is fueling Bitcoin’s rally, bringing it closer to the $100K milestone.” Despite the short-term correction, Bitcoin’s long-term fundamentals remain strong, and the market continues to show signs of bullish sentiment.
The broader market conditions have also exerted downward pressure on Bitcoin. U.S. President Donald Trump’s tariff hikes on China, Mexico, and Canada have strengthened the U.S. dollar, which in turn has impacted both Bitcoin and equity markets. The strength of the dollar has caused a ripple effect across risk assets, contributing to the correction in Bitcoin and other cryptocurrencies.
Altcoins such as Ethereum, Solana, XRP, and Dogecoin have also experienced significant declines, with losses ranging from 5% to 10% in the past 24 hours. Despite the corrections, these assets, like Bitcoin, are still part of a larger bullish phase within the cryptocurrency market.
Despite the recent decline, Bitcoin remains in a fundamentally strong position. Metrics such as Market Value to Realized Value (MVRV) and the Puell Multiple, provided by CryptoQuant, suggest continued upward potential for Bitcoin. Independent analyst MAC_D pointed out that the recent correction is likely a result of leverage overheating in the market, as open interest and leverage ratios reached annual highs. A 10-20% price correction is a natural part of market cycles and reflects the healthy volatility inherent in digital asset markets.
According to Santiment, a leading crypto analytics firm, large holders continue to accumulate Bitcoin at impressive rates. Wallets holding at least 10 BTC purchased an additional 63,922 coins in November, amounting to a value of approximately $6.06 billion. This ongoing accumulation by major holders reinforces the long-term bullish case for Bitcoin. Santiment suggests that any price dip will likely be temporary as long as these large investors maintain their positions in the market.
Popular crypto analyst Ali Martinez noted that Bitcoin’s Relative Strength Index (RSI) is showing a bullish divergence, which could signal a potential rebound in the near future. Martinez suggested that Bitcoin could recover to the $95,000-$96,000 range in the short term, offering a potential buying opportunity for investors looking to capitalize on the market correction.
While Bitcoin’s trajectory toward $100,000 remains intact, analysts caution that volatility is to be expected. Joe Consorti, head of growth at Bitcoin custody firm Theya, pointed out that Bitcoin’s price has historically mirrored global liquidity trends with a 70-day lag. Consorti predicts that Bitcoin could experience another 20-25% correction before resuming its upward movement. However, these fluctuations are typical of the broader market cycle, and analysts emphasize the importance of accumulation during price dips.
In conclusion, while Bitcoin’s recent price correction has generated some short-term concerns, analysts remain confident in its long-term potential. The ongoing accumulation by institutional investors, combined with favorable market metrics and bullish indicators, suggests that Bitcoin is well-positioned to continue its upward trajectory. Investors are advised to view these corrections as natural and to consider accumulating during these price dips to capitalize on Bitcoin’s potential for significant growth in the future.
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