Upcoming Correction Possible: Bitcoin Profit-Taking Remains ‘Below Historical Peaks’

The post Upcoming Correction Possible: Bitcoin Profit-Taking Remains ‘Below Historical Peaks’ appeared first on Coinpedia Fintech News

Bitcoin has just surged to a new all-time high reaching $90k, with its market cap hitting $1.76 trillion. However, after briefly touching the $90k mark, Bitcoin has dropped 2%, settling at $86,640. While 99.99% of Bitcoin addresses are currently in profit, analysts remain cautious about the potential for a correction, even amidst the strong market sentiment. The big question is: Will Bitcoin keep rising, or are we about to see a pullback?

Profit-Taking Below Historical Peaks

According to analysts at Glassnode, Bitcoin has entered a “price discovery phase,” with the entire circulating supply now in profit. Since surpassing its previous all-time high of $73,679 in March, Bitcoin has seen $20.4 billion in realized profits. 

This suggests that the market is currently strong, but profit-taking is much less intense compared to previous all-time highs. 

Glassnode’s report noted that while there has been substantial profit-taking, the volume remains “below historical peaks,” which indicates that Bitcoin still has room to climb before hitting potential demand exhaustion.

While Bitcoin has risen 40% since October 13, some experts believe that a pullback may be imminent if the profit-taking becomes more robust. The market sentiment is strong, with Bitcoin having remained in profit for 12 consecutive days. 

However, the fact that profit-taking is “half as intense” as during past cycles indicates that we might see further gains before a correction takes place.

Key Price Levels To Watch

After breaking the $73,679 resistance level on November 5, Bitcoin surged to $90,100 on November 12. Despite this, Bitcoin has since cooled slightly to $86,534.

For traders, the key to understanding Bitcoin’s future movements lies in watching critical support and resistance levels. Analysts are closely monitoring the $75,000 to $76,000 range as a potential support zone. If Bitcoin retraces, this level could act as a foundation for a potential bounce. 

Meanwhile, resistance is expected around the $89,500 level, and a break above that could push Bitcoin even higher,

Traders Remain Optimistic

Despite the possibility of a correction, many traders remain optimistic about Bitcoin’s future. Figures like Robert Kiyosaki and WealthSquad Chris have voiced their confidence in Bitcoin’s continued rise, with Kiyosaki stating he plans to buy until Bitcoin reaches $100,000. 

Yet, some experts advise caution, suggesting that while Bitcoin is showing strong sentiment, the market must be watched closely for any signs of a correction.