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Bitcoin Price Analysis: $120K Rally or $78K Drop – What’s Next?
The Bitcoin price has recently dropped more than 14% in the past two weeks, causing a lot of uncertainty and concern among investors. The price currently stands at around $93,663.20.
As Bitcoin’s value continues to fluctuate, many are left wondering what could be the cause of this sudden drop. One possibility is that institutional investors have been selling off their holdings, leading to a significant decrease in supply. Another theory suggests that the decline may be due to a selloff from futures market participants.
Institutional investors, such as BlackRock’s IBIT and MicroStrategy Inc., continue to aggressively accumulate more coins, despite the short-term bearish outlook for Bitcoin. According to Coinglass’ on-chain data analysis, the supply of Bitcoin on centralized exchanges has declined to a multi-year low of about 2.24 million.
However, recent futures market Open Interest (OI) data suggests that there may be rising fear among traders of a potential midterm selloff. The OI has decreased by over $7 billion in the past few weeks, now hovering at approximately $59 billion.
So, what’s next for Bitcoin? Will we see a recovery and rally to new highs above $120,000 or will we see a further drop to lows below $78,000?
It is difficult to make accurate predictions, especially considering the highly volatile nature of cryptocurrencies. However, it’s clear that there are many factors influencing the market right now.
While there is a possibility that we could see Bitcoin recover and hit new highs, the current trend does not suggest this. The recent price drop has led to a significant decrease in supply, which may cause a mid-term selloff.
It is essential for investors to be aware of these trends and consider their investment strategies accordingly.
Source: coinpedia.org
