According to CryptoQuant experts, the catalyst for the fall in the value of the first cryptocurrency was the purchase of an additional 55,000 BTC by the American company MicroStrategy for $5.4 billion. The situation could have been aggravated by the holiday in the United States, which falls on November 28 (Thanksgiving Day).
“The Bitcoin market is taking a breather, volatility has shifted toward puts, and there have been $438 million in outflows from Bitcoin spot ETFs,” the report said.
CryptoQuant CEO Ki Young Ju noted that the current Bitcoin pullback should not be considered unexpected, and the quotes have only retreated to last week’s levels.
“After the elections, the market became extremely overbought due to excessive leverage, which made a pause inevitable,” the expert explained.
CryptoQuant noted that profit-taking pressure has not yet reached the peak that was observed after the previous all-time high in March. This leaves room for further increases in the price of Bitcoin in the medium term. If the momentum continues, Bitcoin could rise to $100,000 in the medium term, analysts say.
Earlier, representatives of the brokerage company FalconX said that the preponderance of “bullish orders” for Bitcoin was weakening, and sellers of the asset began to occupy a more dominant position in the market than just a few days ago.
Source: Bits
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