Bitcoin Declined to 94 Thousand Dollars, What Do Analysts Say?

The crypto market correction led by Bitcoin (BTC) continued for a third day, with the asset losing another 3.5 percent in the last 24 hours, falling to $94,000 a week after coming so close to the $100,000 level for the first time.

BTC reduced its weekly gains from 10 percent to 3 percent with profit taking following the already expected pullback. Data shows major tokens are following the decline, with Solana’s SOL, BNB, Cardano’s ADA, and dogecoin (DOGE) dropping as much as 7 percent in the last 24 hours.

CoinDesk 20 (CD20), which tracks the largest tokens by market cap, is losing about 3%.

However, BTC’s short-term $100,000 target remains unchanged, and analysts see a correction of up to 10% after the peak is recorded as a “natural phenomenon.”

CryptoQuant analyst MAC_D writes in his post: “This correction occurred due to open interest and estimated leverage reaching annual highs. Therefore, a 10-20% correction can be seen as a natural phenomenon.”

“From an on-chain perspective, cycle metrics such as MVRV, NUPL and Puell Multiple indicate that bitcoin is still in a bull market with upside potential. The important part here is to identify periods of large accumulation during corrections and the ‘Short-Term SOPR’ for that matter.” metric stands out.”

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Short-Term SOPR (Spent Output Profit Ratio) examines whether people who own bitcoin for a short period of time make money when they sell. CryptoQuant defines short-term holders as those who have held their BTC for more than 1 hour but less than 155 days.

If the SOPR value is above 1, these holders are considered to have sold their bitcoins for more than they paid for them (made a profit). If it is below 1, they will sell it cheaper and make a loss. The SOPR value reached 1.096 last week, indicating that short-term holders have made money and are inclined to sell. This contributed to the current weakness in BTC.

However, bitcoin tends to rally when short-term holders sell at a loss. Some say this creates a buying opportunity for investors at current levels to reach a potential target of $100,000 and above in the coming weeks.

Ruslan Lienkha, market manager at YouHodler, stated in an interview with CoinDesk: “The record stablecoin capital inflow recorded on Binance shows that we are in the middle of the current bull market, but not near the end. Bitcoin is going through a correction phase driven by profit taking, which is causing the price to decline.” “It could cause it to consolidate before a potential move towards the key psychological level of $100,000.”

Some analysts warn that the market will witness plenty of volatility in the coming period.

“Even if markets manage to break the 100k wall, we may see further squeezes in the $120k to $130k area,” Augustine Fan, head of insight at SOFA, writes in a Telegram post.