Bitcoin Price Dips, $500M Liquidated: Is $100K Still Possible?

The crypto market experienced a dramatic $500 million in liquidations over the past 24 hours due to Bitcoin’s price swings. Long traders were hit hardest, with more than $366 million in long positions liquidated, while short positions saw $129 million wiped out.

This came after Bitcoin’s price dropped from about $98,000 to $95,500 on Sunday. However, it quickly rebounded, climbing back above $98,000. This drop followed Bitcoin’s near-miss of the $100,000 milestone on November 23, emphasizing ongoing price fluctuations. Though this drop was expected, it has raised concerns about further declines, causing fear in the market.

What’s Pushing Bitcoin Towards $100K?

Billionaire investor Mike Novogratz, CEO of Galaxy Digital, recently shared his insights into the driving forces behind this selling pressure. According to Novogratz, recent Bitcoin activity can be largely explained by profit-taking and market psychology, but there’s more beneath the surface.

Novogratz believes that many of the sellers are investors who entered the market in 2024 when Bitcoin was priced above $56,000. As Bitcoin nears new highs, these investors are taking profits. This kind of market reaction is typical when assets approach major price milestones, and Novogratz sees it as a normal part of a bull run.

HODLers Keep the Market Stable

While short-term profit-taking is one factor, Novogratz also points out that many recent buyers are long-term holders, or “HODLers.” These investors are less likely to sell during price swings, which helps keep the market stable.

With Bitcoin’s supply reduced by the recent halving, Novogratz sees this as a positive trend for the long-term outlook, as it reduces selling pressure and supports the price.

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The $100K Psychological Barrier

Psychology also plays a big role. Large round numbers, like $100,000, often act as barriers in financial markets. When Bitcoin approaches these levels, both aggressive selling and cautious buying increase, leading to periods of consolidation.

Novogratz isn’t concerned about this, as consolidation near key price points is common before a breakout.

In a recent X post, analyst Ali Martinez also suggested that Bitcoin’s price may exceed $100,000 during this bull run. He noted that long-term holders are showing increasing greed, a sign that historically indicates a longer bull market.

Martinez predicted that it could take 8-11 months for Bitcoin to reach its market top, implying more gains ahead before the cycle peaks. Plus, the Relative Strength Index (RSI) is showing strong momentum, suggesting that crypto is on the brink of a major breakout. This analysis points to a possible surge toward the expected $100,000 level soon.

With BTC hanging on a thin ice it will be interesting to see if it rises or drops before hitting $100K. 

Curious about what’s next for BTC? Read Bitcoin price prediction insights and discover if $100K is within reach during this bull run!

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