Bitcoin loses support as the leading cryptocurrency struggles to maintain key price levels, sparking concerns of a potential crypto crash. With Bitcoin (BTC) experiencing a 3% drop in the last 24 hours, investors are now questioning whether a major correction is around the corner.
The recent profit-taking trend has widened Bitcoin loses support, with BTC currently consolidating around $97,000. Although Bitcoin recently broke the critical $100,000 mark, analysts warn that its most important support level is at risk.
Bitcoin’s loses support and Market Outlook
Leading crypto analyst Michael van de Poppe predicts that if Bitcoin loses support, a correction toward $90,000 could occur. However, a short-term recovery remains possible if the bulls push the price back above $98,000.
Meanwhile, bestselling author and financial educator Robert Kiyosaki has weighed in on the situation. Kiyosaki views the market downturn as a golden opportunity to acquire assets like Bitcoin, gold, and silver at lower prices. Historically, market corrections have proven to be ideal times to build long-term value.
On the other hand, prominent crypto expert Lark Davis remains optimistic, stating that the “best part of the bull market is yet to come.” Davis reassures investors that corrections are normal in every crypto cycle and encourages patience as the market continues to evolve.
Long-Term Holders and Bitcoin Reselling Trends leading to Bitcoin Loses Support
A critical metric, the “BTC: Total Supply Held by Long-Term Holders,” highlights an important trend in the current market. This metric tracks the amount of Bitcoin held by long-term investors who refrain from moving their assets for extended periods.
Recently, this figure has been declining, while the Bitcoin price has been rising. This behavior is typical of a bull market, where long-term holders take profits while new investors enter the market, driven by speculative interest.
However, the trend also signals an increasingly volatile market structure. As speculative trading grows, short-term price movements may become sharper and more unpredictable, increasing the potential for sudden corrections.
MicroStrategy Buys 21,550 More Bitcoins
Despite market fluctuations, major players remain confident in Bitcoin’s future. Business intelligence firm MicroStrategy recently added 21,550 BTC to its holdings between December 2 and December 8, 2024. The company spent $2.1 billion at an average price of $98,783 per Bitcoin, further solidifying its bullish stance.
In total, MicroStrategy now holds 423,650 BTC, acquired at an average price of $60,324 per coin. Co-founder Michael Saylor has once again expressed his confidence, declaring his willingness to continue buying Bitcoin even at a valuation of $1 million per BTC.
Saylor also made headlines by urging the US government to sell its gold reserves and invest in Bitcoin, underscoring his long-term belief in the cryptocurrency’s value.
Future Market Trends: A Bear Market in 2025?
According to Mark Yusko, CEO of Morgan Creek Capital, Bitcoin’s bull cycle is expected to continue until mid-2025. Yusko projects that Bitcoin could rise to $150,000 after reaching its “fair value” of $100,000.
However, he also anticipates a subsequent bear market once this cycle concludes. Yusko remains cautious about Ethereum due to competition from high-performance blockchain networks like Solana and Avalanche. For now, Bitcoin remains the preferred investment choice, with strong potential for further gains.
Is Bitcoin Headed for a Crypto Crash?
While Bitcoin loses support in the short term, analysts and experts offer differing perspectives on what lies ahead. Some fear a correction to $90,000, while others believe the ongoing bull market has significant upside remaining. Whether a crypto crash is imminent or not, volatility remains the key theme in the current market.
For long-term investors, corrections present opportunities to accumulate assets like Bitcoin at discounted prices. However, short-term traders must remain vigilant as the market structure becomes increasingly speculative.
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