- Bitcoin faces a correction after a rejection at $100K, but key support levels may offer a foundation for recovery.
- Despite recent volatility, Bitcoin’s hidden bullish divergence suggests underlying strength and a potential rally ahead.
- Institutional interest remains robust, with $7B in Bitcoin ETF inflows signaling continued long-term confidence.
The recent price movements of Bitcoin have raised questions on what the cryptocurrency will do next after a strong rejection at $100,000. Crypto Rover explained in a YouTube video that following a bearish divergence, BTC fell to around $92,788 and the crypto might be near a crucial support line.
Although Bitcoin may still suffer from short-term volatility, there are those who think that the correction has not yet reached its conclusion. The $94,000 range was a resistance area that can be expected to act as a support going forward. This move could provide a base for BTC to find its feet and maybe kick start another rally.
Bitcoin’s Consolidation Phase
Overall, cryptocurrency remains within a consolidation pattern, the market has created a symmetrical triangle. At the moment, if the price of Bitcoin is to hold its ground, it should be expected to remain within this range. But, a breakdown of support may lead to a decline towards the $86,000 – $87,000 level.
Most of the momentum indicators such as the Relative Strength Index (RSI) have indicated a hidden bullish divergence, where the price of token remained stable while the RSI was weak. This means that the fundamental of BTC could result in a bullish trend in the near future.
A rejection mostly led to the price falling to $100,000 which had several sell orders. This has been a psychological level for most traders which led to many taking profits on their previous gains in cryptocurrency.
Institutional Confidence in BTC
On the institutional front, Bitcoin remains popular, including at a time when the price has been sliding lower. This is because the US Elections have seen Bitcoin ETFs receive more than $7 billion in inflows, taking the total AUM to over $105 billion. Nevertheless, Bitcoin ETFs witnessed a net redemptions of $438 million on November 25, and BlackRock’s Bitcoin ETF attracted new investments of $267.79 million which show that institutions are still confident.
Source: SoSo Value
Retail behavior is also important, especially during Black Friday. Typically, there had been some price decline on this time of the year, which might be attributed to investors who sell their token to finance their Christmas shopping. This may be the reason for the current price drop which is being witnessed today.
Bitcoin is expected to continue with lateral movement while altcoins are expected to experience renewed demand. Meme coins and tokens related to AI are expected to do well due to the increased involvement of the retail investors. Short-term investors are back in the market and the future is still unpredictable; however, institutional investors provide a ray of hope for the future of cryptocurrency.
