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Bitcoin's $100K Showdown: Hold or Fold?

Coin WorldTuesday, Jan 28, 2025 1:02 pm ET

1min read

Bitcoin Price Analysis: Will BTC Hold Above $100,000 Or Is A Correction On The Cards?

Bitcoin has been on a rollercoaster ride lately, surging past $103,000 and then retracing to under $98,000. As investors wonder if the cryptocurrency can hold above the $100,000 mark, analysts weigh in on the potential for a correction.

On the one hand, some experts point to the lack of typical bull market indicators, such as extreme greed among investors and a high proportion of new investors. On-chain data from CryptoQuant suggests that new investors control only 50.2% of the market's wealth, well below the peak levels of 85% in 2018 and 74% in 2021. Additionally, the proportion of younger UTXOs (held for one day to three months) remains below the levels seen during previous cycle tops.

On the other hand, Bitcoin's recent price action has been volatile, with sharp swings in both directions. Some analysts argue that this unpredictability is a feature, not a bug, of the cryptocurrency. Jim Cramer, for instance, has reversed his stance on Bitcoin, now advocating for investors to own the cryptocurrency directly rather than through companies like MicroStrategy.

As Bitcoin continues to defy expectations, investors must stay vigilant. While the cryptocurrency may hold above $100,000, a correction is always a possibility. As always, it's essential to conduct thorough research and consider your risk tolerance before making any investment decisions.

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