BTC Price Drops Below Key Support Level, What's the Reason?
Bitcoin Plunges Over $3,000: Danger Sign or Normal Correction?
Bitcoin (BTC) started the new week with a sharp decline, losing more than $3,000 in just a few hours.
After failing to break above the $98,000 mark to reach the psychological $100,000 threshold , BTC price is now trading around $95,000 .
“Whale” Sell-Off – Main Reason?
According to data from Lookonchain , a large investor (aka whale ) transferred 1,000 BTC worth hundreds of millions of dollars to Binance today , likely to take profits.
This whale accumulated over 11,657 BTC at an average price of $66,953 , benefiting nearly 50% from the previous surge.
This action is believed to have triggered a rapid price drop, pushing BTC from $98,000 to below $95,000 before recovering slightly.
$96,175 Level – Important Support “Fortress”
Analyst Ali sees the $96,175 price as a strong support zone, as more than 1 million wallets have accumulated 950,000 BTC at this average price.
Holding this level will determine whether BTC has a chance to move towards the $100,000 mark in the short term.
Need to Panic?
Rafael from Glassnode reassures that the market is not yet in danger zone. The Relative Unrealized Profit (RUP) index – a measure of market overheating – is currently at 0.74 , significantly lower than the warning threshold of 0.9 in previous bull cycles.
“The market still has room to grow,” Rafael concluded.
Factors That Are Dominating the Market
Ryan Lee , an expert from Bitget , points out three main factors affecting BTC and ETH in the coming time:
ETF Inflows:
BTC ETF records $5.6 billion net inflows in November.
ETH ETF also surged with $300 million in just one day.
Power from ETH ecosystem:
ETH price recently surpassed $3,600 , thanks to increased spot demand.
ETH/BTC Ratio Recovers, Showing ETH Could Lead the Altcoin Market.
External factors:
Microsoft Considers BTC Investment, Could Be a Big Motivator.
SEC Chairman Gary Gensler's departure in 2025 could create a more favorable environment for cryptocurrencies.
Based on those factors, Ryan Lee predicts:
Bitcoin (BTC): Could fluctuate between $85,000 – $120,000 in December.
Ethereum (ETH): Expected price from $3,000 – $4,500 , with the possibility of surpassing the historical high of $4,900 at only 11.1% .
Conclusion: No Need to Worry Too Much
While the recent price drop has attracted attention, market indicators and analysis suggest it may just be a temporary correction.
With support from ETF inflows and potential policy changes, BTC and ETH still have a great opportunity to grow in the coming weeks. Investors should focus on support levels and not panic too much about short-term volatility.