Bitcoin (BTC) fell to $94,500 yesterday after Microsoft shareholders decisively rejected a Bitcoin Treasury proposal to allocate 1% of the company’s total assets to buy BTC as an inflation hedge. However, analysts are still confident of further appreciation of the BTC price.
Bitcoin may rise to $275,000
Accordingly data From CoinGlass, more than $478 million worth of contracts – mainly long positions – were liquidated in the past 24 hours following the decline in BTC and other cryptocurrencies. Interestingly, altcoins had more liquidity than Bitcoin.
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However, some analysts see this price drop as a buying opportunity. Experienced crypto analyst Ali Martinez took over X highlight A long cup and handle pattern is forming on Bitcoin’s weekly chart.
For those unfamiliar, a cup and handle pattern is a bullish technical formation that resembles a rounded “cup” followed by a brief consolidation period or “handle.” This usually indicates the likelihood of an uptrend continuing, often leading to significant price increases.
Martinez noted that the pattern suggests Bitcoin could rise to $275,000 based on its technical structure. However, he also urged traders to exercise caution and avoid overleveraging their positions.
On the other hand, leading crypto analyst @Trader_XO warned That Bitcoin should maintain its support at $90,000 to avoid further losses. Should BTC lose this critical level, it could drop to $85,000. Conversely, a hold above $90,000 would allow the cryptocurrency to rebound and resume its upward trend.
BTC takes another squeeze on breaking through $100,000
Despite yesterday’s drop, Bitcoin recovered quickly, trading near $100,000 at the time of writing. The flagship cryptocurrency remains in an overall uptrend, likely following today’s US. Reinforced by inflation data for November, which is largely in line with market expectations.
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Bitcoin recently hit a new all-time high (ATH) of $103,679, according to data From CoinGecko. However, its price has fluctuated above and below the major $100,000 mark, leading to more than $1.5 billion in liquidations in the past week.
Several factors could drive the price of Bitcoin to a new ATH. For example, there are BTC reserves on cryptocurrency exchanges hit The multi-year low reflects growing demand for digital assets.
American financier and former investment banker Anthony Scaramucci recently predicted China may set up its own bitcoin reserve if the US moves forward With its strategic bitcoin reserve plans. National BTC reserves are expected to reinforce the narrative of Bitcoin’s supply shortage, potentially pushing prices higher.
At the same time, BTC adoption among corporations continues, as Canadian video-sharing firm Rumble became The latest company to unveil a BTC treasury strategy. BTC trades at $100,453 at press time, up 4.1% in the past 24 hours.
Featured images from Unsplash, X and charts from TradingView.com
