Bitcoin fell below $95k on Thursday, causing anxiety among investors as the memory of the “Thanksgiving Massacre” earlier in 2020, when Bitcoin dropped by more than 17% within fewer hours. It briefly bounced back to $95,500 on Tuesday before looking rather weak, standing at $96,972 at the time of this writing.
The cryptocurrency market is experiencing a breakable balance between bullishness and bearishness. Some suggested it could surge above $100,000, but others believe that volatility during the holiday season is a reason for concern. According to CryptoQuant, the bull market remains accurate as chartists expect $146K for Bitcoin while several temporary pullbacks can happen.
In a recent report by CryptoQuant, the Bitcoin price is still below the overbought line, more often marking a long-term uptrend. Realized price valuation plots present a possibility of a top at $146,000, typical, as seen in other previous cycles like April-May of 2021.
The Bitcoin Profit and Loss Index and other valuation methods indicate the market's current position is bullish. However, fluctuations such as the dip to $91,000 earlier in the week are part of a market's fluctuations. Similar to equities, Institutional activity exhibits bullishness, with Wednesday’s US spot Bitcoin ETF registering a $103 million inflow after two consecutive days of outflows. The continuation of this trend was potentially positive for Bitcoin’s price in the short run.
While there exists a bullish angle, bearish technical signals are at large. Momentum indicator Relative Strength Index (RSI) also depicted a bearish divergence, where higher peaks were not formed to correspond to higher prices. It commonly forms a likely scenario of a possible reversal or correction of prices.
Likewise, the Moving Average Convergence Divergence (MACD) indicated a bearish crossover this week, suggesting more selling pressure. However, if the price drops, Bitcoin may approach the crucial support at $90,000 if it cannot go back up. The price may drop to $85,000, a significant psychological threshold.
Moreover, the recovery from current levels could allow Bitcoin to close to its record high of $99,588. On the one hand, analysts have set their Bullish targets for the market, and investors are closely watching how the situation develops to estimate the growth of cryptocurrency.