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Bitcoin's Recent Performance
After hitting an all-time high of $99,600 last Friday, Bitcoin has retracted to $94,000, marking its first significant pullback in nearly a week. This dip follows a 40% surge over three weeks post the U.S. election, fueling speculation about an impending correction.
Historical Patterns Suggest Downward Trend
Noted analyst Rekt Capital highlights cyclical parallels:
- 2013 Cycle: Six-week rally preceded a 25% drop in Week 7.
- 2017 Cycle: Seven-week uptrend led to a 34% retracement in Week 8.
- 2020/2021 Cycle: Six-week rise followed by a 16% decline.
Currently in its fourth week of growth, Bitcoin may face a 25% correction within 2–4 weeks, potentially dropping to $70,500—a level unseen since election day.
Key Market Drivers
Long-Term Holders (LTHs) Increase Selling Pressure
- Data Insight: Glassnode reports LTHs selling -366,000 BTC monthly, the highest since April 2024.
- Profit-Taking: The 6–12 month cohort leads sales, averaging 25,600 BTC daily, having bought at 71% below current prices (~$57,900).
Current Bitcoin Status
- Price: $94,000 (5% daily drop).
- Year-to-Date Gain: 150%, with positive momentum across other time frames.
👉 Stay updated on Bitcoin trends
FAQ Section
Q: Why is Bitcoin's price dropping?
A: Profit-taking by long-term holders and historical cyclical trends suggest a natural correction phase.
Q: How low could Bitcoin go?
A: Analysts project a 25% drop to ~$70,500 based on past cycles.
Q: Is this a good time to buy Bitcoin?
A: Market volatility warrants caution; consider dollar-cost averaging and thorough research.
Q: Who’s driving the current sell-off?
A: Primarily long-term holders capitalizing on recent highs.
Final Thoughts
While Bitcoin’s long-term outlook remains bullish, short-term volatility is expected. Investors should monitor LTH activity and historical patterns for cues.
Disclaimer: This content is for educational purposes only and not financial advice. Conduct independent research before investing.
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