Bitcoin (BTC) fell to $94,500 yesterday after Microsoft shareholders decisively rejected Bitcoin Finance's proposal to allocate 1% of the company's total assets to buy BTC as an inflation hedge. However, analysts are still confident that they will further appreciate the price of BTC.
Bitcoin could rise as high as $275,000
according to data from Coinglass, more than $478 million worth of contracts – mainly long positions – were liquidated in the last 24 hours following the drop in BTC and other cryptocurrencies. Interestingly, altcoins had higher liquidity volumes compared to Bitcoin.
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However, some analysts see this price drop as a buying opportunity. Expert crypto analyst Ali Martinez brought X to clarification a long cup and handle pattern forming on the Bitcoin weekly chart.
For those unfamiliar, the cup and handle pattern is a bullish technical formation that looks like a round “cup” followed by a short consolidation or “handle” period. It usually indicates the potential for continued growth, often resulting in significant price gains.
Martinez noted that the pattern suggests that Bitcoin could rise as high as $275,000, based on its technical structure. However, he urged traders to be careful and avoid putting too much pressure on their positions.
On the other hand, prominent crypto analyst @Trader_XO warning that Bitcoin needs to hold its support at $90,000 to avoid further downside. If BTC misses this critical level, it could drop as low as $85,000. On the other hand, holding above $90,000 would allow the cryptocurrency to rebound and restart.
BTC takes another jab at breaking through $100,000
Despite yesterday's drop, Bitcoin quickly recovered, trading near $100,000 at the time of writing. The major digital currency has remained at an overall rise, possibly bolstered by today's US inflation data for November, which was largely in line with market expectations.
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Bitcoin recently hit a new all-time high (ATH) of $103,679, according to a report data from CoinGecko. However, its price has soared above and below the important $100,000 mark, resulting in over $1.5 billion in liquidation in the past week.
Several factors could move the price of Bitcoin to a new ATH. For example, BTC reserves are on cryptocurrency exchanges hit multi-year lows, reflecting growing demand for digital assets.
Recently the American financier and former investment banker Anthony Scaramucci predict China could set up its own Bitcoin reserve if the US forward with its strategic Bitcoin reserve plans. National BTC deposits are expected to reinforce the Bitcoin supply shortage report, which could drive prices higher.
Meanwhile, BTC adoption among corporations continues to rise, such as Canadian video sharing company Rumble grew the latest company to reveal BTC financial strategy. BTC trades at $100,453 at press time, up 4.1% in the past 24 hours.
Featured image from Unsplash, Charts from X and TradingView.com
