Bitcoin Price Prediction: BTC Could Drop to $88,000 Before Hitting $100,000
The latest report from Glassnode suggests that Bitcoin (BTC) may experience a dip to the $88,000 range before continuing its upward trend towards the $100,000 milestone.
Air Gap and Price Discovery
- Bitcoin’s rapid rally has created an “air gap” between $76,000 and $88,000 with minimal trading activity.
- This underdeveloped price range could draw market attention if the current pullback persists.
- Price discovery phases involve cycles of rallies, corrections, and consolidations to establish stable price ranges.
Role of Long-Term Holders (LTHs)
- LTHs play a crucial role in returning dormant supply to circulation during price discovery.
- Supply distribution analysis is essential to identify potential supply and demand zones impacting Bitcoin’s trajectory.
- A re-accumulation phase may be necessary for the market to digest profit-taking pressures and maintain upward momentum.
Similarities with March Rally
The current rally in Bitcoin reflects patterns observed during the March rally, where significant supply re-accumulation at lower levels supported the price surge.
Profit-Taking and Market Equilibrium
- LTHs have distributed a significant amount of BTC since September, leading to record profits and heightened spending activity.
- The Sell-Side Risk Ratio indicates increased profit-taking, but demand appears resilient to absorb selling pressure.
- Coins aged 6 months to 1 year dominate current sell-side pressure, suggesting a “swing-trade” strategy among investors.
Market Data
At the time of writing, Bitcoin is ranked #1 by market cap, with a market capitalization of $1.83 trillion and a 24-hour trading volume of $90.48 billion.
Crypto Market Summary
The total crypto market is valued at $3.18 trillion, with Bitcoin dominance at 57.37%.
Mentioned in this article
Check out the latest Alpha Market Report for more insights.
