This article is also available in Spanish.
Bitcoin (BTC) fell to $94,500 yesterday after Microsoft shareholders strongly rejected the Bitcoin treasurer’s proposal to allocate 1% of the company’s total assets to buy BTC as an inflation hedge. Nevertheless, analysts are still convinced of further appreciation of BTC price.
Bitcoin May Rise to $275,000
According to data from Coinglass, more than $478 million worth of contracts – primarily long positions – were liquidated in the past 24 hours following the collapse of BTC and other cryptocurrencies. Interestingly, altcoins are very high compared to Bitcoin.
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However, some analysts see this price drop as a buying opportunity. Seasoned crypto analyst Ali Martinez took to X to highlight a long cup and handle pattern forming on the weekly chart of Bitcoin.
For those unfamiliar, the cup and handle pattern is a technical design that resembles a round “cup” followed by a short joint or “handle.” It usually indicates the potential for continued upside, often resulting in significant price gains.
Martinez noted that the pattern suggests that Bitcoin could rise to $275,000, based on its technical structure. However, he also urged traders to be careful and avoid exaggerating their positions.
On the other hand, prominent crypto analyst @Trader_XO he warned that Bitcoin should maintain its support at $90,000 to avoid further declines. If BTC loses this critical level, it may drop below $85,000. On the other hand, holding above $90,000 will allow the cryptocurrency to resume its rise.
BTC Takes Another Jab at Breaking $100,000
Despite yesterday’s dip, Bitcoin quickly recovered, trading close to $100,000 at the time of writing. The flagship cryptocurrency continues to rise sharply, possibly boosted by the US inflation today data in November, which is more in line with market expectations.
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Bitcoin recently hit an all-time high (ATH) of $103,679, according to the data from CoinGecko. However, its price has fluctuated above and below the important $100,000 mark, resulting in the liquidation of more than $1.5 billion last week.
There are several factors that could drive the price of Bitcoin to a new ATH. For example, BTC reserves in cryptocurrency exchanges have beat a multi-year decline, reflecting rising demand for digital assets.
American financier and former investment banker Anthony Scaramucci recently predicted China may establish its own Bitcoin reserve if the US continues with its strategic Bitcoin reserve plans. National BTC reserves are expected to reinforce the Bitcoin shortage narrative, which could drive prices higher.
At the same time, the acquisition of BTC between companies continues to grow, as the Canadian firm that shares Rumble videos he was the latest company to unveil a BTC treasury strategy. BTC is trading at $100,453 at press time, up 4.1% in the last 24 hours.
Featured image from Unsplash, Charts from X and TradingView.com
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