Nov 25, 2024, 12:00 AM
Nov 25, 2024, 12:00 AM

Bitcoin struggles to break $100,000 barrier amid profit-taking

Highlights
  • As of November 25, 2024, Bitcoin was priced around $98,243.25, just under the $100,000 mark.
  • Analysts attribute the current price stagnation to profit-taking and a highly leveraged market environment.
  • Experts suggest that while there may be corrections in the short term, strong investor positionings could potentially lead to future price increases.
Story

On November 25, 2024, Bitcoin was reported to be trading stubbornly below the significant $100,000 level. This situation has raised concerns about the trend following a significant rally after the recent elections in the United States. Analysts pointed to several factors contributing to this stall, including profit-taking by investors who are cashing out from the substantial gains made during the preceding weeks. As Bitcoin reached near the psychological milestone, it positioned itself at approximately $98,243.25, showing only a marginal increase on the day. Comments from experts suggest that the crypto market is currently experiencing a short-term correction. Andre Dragosch, head of research for Europe at Bitwise, indicated that the bullish momentum might be paused due to profit-taking activities leading to what appears to be a stretched positioning in the market. Additionally, Michael Novogratz, a prominent figure in the crypto space, described the current market as heavily leveraged, implying that the potential for a correction is imminent amidst such speculative pressure. Further complicating the situation, David Morrison of Trade Nation noted that while the $100,000 level is seen as a psychological barrier, it has transformed into a significant hurdle for the price. He warned investors might choose to secure their profits now, which could lead to further downward pressure on Bitcoin's price. On the other hand, this moment of consolidation might pave the way for stronger future growth, depending on market sentiment and investor strategies. Marion Laboure from Deutsche Bank pointed out the ongoing political context influencing crypto sentiment. Although former President Donald Trump's pro-crypto commentary has been received positively, concrete federal regulations are still absent, leading to uncertainty in the market. While Laboure sees potential regulation as beneficial for the industry at large, the distant prospect of a national digitized currency remains on the horizon, further adding to the cautious sentiment among investors.

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