The post Bitcoin Nears $100,000 Amid Profit-Taking Phase, Analysts Suggest Potential Chopsolidation Ahead appeared on BitcoinEthereumNews.com.

Bitcoin has made headlines as it nears the $100,000 milestone, stirring excitement yet caution among investors in the crypto arena. Market analysts observe significant profit-taking among short-term investors, leading to a strategic consolidation phase. James Check, in his latest analysis, highlights the potential weeks of “chopsolidation” as the market stabilizes. Bitcoin approaches the critical $100,000 mark as analysts anticipate a profit-taking phase. A consolidation period may be on the horizon. The Reality of Bitcoin’s Profit-Taking Phase The recent surge in Bitcoin’s price, which soared to $99,600 last Friday, has set the stage for a crucial profit-taking period. Investors are now navigating a complex landscape where many are reevaluating their positions after the asset’s meteoric rise. According to market analysts, this profit-taking phenomenon is common following sharp increases, particularly after a 34% jump in just 16 days following a catalyst like Donald Trump’s election victory. Market Dynamics and Investor Behavior As reported, Bitcoin has since dipped to around $90,700 but is currently stabilizing in the $97,000 range as market sentiment shifts with the approaching Thanksgiving holiday. The volatility has led to varied reactions among investors: while some opt to cash in on their gains, others are holding firm. James Check’s insights demonstrate that “some leverage is flushed”, suggesting that newer, short-term investors may be more reactive to market swings. Short-Term Selling vs. Long-Term Holding The distinction between short-term sellers and long-term holders is critical in understanding the current market dynamics. Check noted that approximately 44% of the selling pressure comes from short-term sellers capitalizing on recent highs. Meanwhile, long-term holders—those holding Bitcoin for over 155 days—exhibit caution, indicating a strong belief in the asset’s long-term potential. Alex Thorn supports this view, noting that “truly long-term holders are not stepping in here to take profits,” emphasizing that the market remains supported by…

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Filed under: News - @ November 28, 2024 12:23 am