Bitcoin Price Today: What’s Next After 8% BTC Crash?

After setting up an all-time high (ATH) at $99,690 on November 22, BTC crashed 8.88% in total and created a local bottom at $90,835. Will Bitcoin recover and visit $100,000 or continue its descent to $77,000? Bitcoin (BTC) price today trades at $95,945.0 on 11 PM. BTC price hit a daily high of $97,360.0 today after a 4.45% move on October 21.

Bitcoin Price Today: 3 Reasons Why BTC Crashed

Bitcoin price dropped 8.88% between the November 22 high of $99,690 and created a local bottom at $90,835. This four-day crash has wiped out more than $1 billion worth of positions. Let’s explore three reasons why Bitcoin crashed.

1. With Bitcoin breaking its seven-month consolidation range, it likely attracted massive retail investors. As a result of this increased leverage, short-term drops are natural and cull early bulls and impatient investors.
2. Additionally, $100,000 is a key psychological level, and before Bitcoin price takes out this hurdle, a short-term shakeout is something that veteran traders expect. This allows for a reduction of the total leverage and resets the market dynamics.
3. One of the key reasons could be profit-taking. Considering that BTC shot up from $17,000 at the start of 2023 and is now hovering just below $100,000, it is likely that these investors will realize profits, adding to the selling pressure.

As mentioned, Bitcoin price today is up 4.45% after BTC crashed 8.88% and currently auctions around $95,945.0. Despite the recent drop, BTC shows signs of recovery and trades around $95,945.0. Many were seen preemptively celebrating Bitcoin hitting $100,000 on Friday, but the recent crash has revealed that BTC has other plans. Regardless, one thing is clear – investors are eager to see Bitcoin cross the historic six-digit level. While some altcoins are shooting up, most are waiting for BTC to cool off.

From the looks of it, Bitcoin price looks ready to recover and is showing signs of forming a local bottom.

*bitcoin price updated as of 11 PM.

Value of BTC trades at $95,945.0, bringing the year-to-date gain from 56% on October 20 to 120% as of October 21. The YTD performance has slumped due to the recent BTC crash. Although many altcoins have shot up over triple digits, Bitcoin is catching up. Ethereum price’s YTD performance is lackluster, stands at 45%, and is well below BTC.

Although Bitcoin is the largest cryptocurrency by market capitalization, Bitcoin’s popularity is due to its first-mover advantage and its being a secure, decentralized network. In addition, many narratives, like digital gold, inflation hedges, and uncorrelated assets, have kept BTC at the forefront of the crypto market since its inception in 2009.

Will BTC Price Finish 2024 on Bullish Note?

Industry veterans’ speculation of a bull run post-US elections was right, and Bitcoin is likely to end November 2024 on a positive note. Many even expect a six-digit target for BTC by the end of November, and this is due to the historical returns. History shows that Bitcoin has always performed massively in the fourth quarter.

With that said, if Bitcoin price hits a new ATH in November or December, Bitcoin’s market capitalization, which stands at $1,898.2 billion, could finally hit the $2 trillion mark.

Bitcoin’s Market Capitalization

While Bitcoin’s market cap hovers around $1,898.2 billion, with Ethereum, the duo controls nearly 65% of the total cryptocurrency market capitalization. Despite the seven-month consolidation, Bitcoin’s $1.93 trillion market cap remains strong, anticipating it reaching $2 trillion before 2025.

BTC: A composition of 24-hour Trading Volume

Being the top crypto has its benefits; more people tend to flock toward the asset. Likewise, BTC’s 24-hour trading volume stands at $78.6 billion. Binance, one of the largest cryptocurrency exchanges, contributes a major portion of this volume. Binance’s share of BTC’s 24-hour trading volume comprises spot and perpetuals trading. While spot volume hovers around 11%, perpetual volume is 41%. Exchanges like OKX, Bitget, etc, follow Binance.

Key Bitcoin Blockchain Updates

With a market cap of $1.93 trillion, it is necessary for the network to remain secure, decentralized, and scalable. This is possible by upgrading the Bitcoin network regularly.

Here are some notable upgrades the Bitcoin network has received or planned to receive since its inception in 2009.

Bitcoin Network Upgrades Since 2009

Here are some key milestone upgrades to the Bitcoin network over the past decade.

Bitcoin Price Analysis: What’s Next for BTC After 8% Crash?

Despite the recent drop, Bitcoin remains bullish. Even if BTC drops another 7%, it won’t lose the bullish market structure. The key swing point that needs to be held is $87,367, and a bounce here will keep the optimism and put BTC back on track to hit $100,000.

The Relative Strength Index (RSI) has bounced after briefly touching the oversold level, suggesting the resurgence of bullish momentum. Additionally, the Awesome Oscillator (AO) has also produced higher low histograms below the zero mean level, indicating a reduction of the bearish momentum and an uptick in buying pressure. All these signals suggest that a short-term uptick in Bitcoin price is likely.

As seen in the below chart, BTC could either bounce from the current level or slide lower. If it bounces here, it will face the $95,981 and $96,739 hurdles. If the correction is done, then Bitcoin should breach these barriers and set up a new ATH at $100,000.

On the other hand, if BTC continues its descent, it will visit $87,637, the aforementioned key support level. This would be a good opportunity for sidelined buyers to step in and accumulate BTC before a $100,000 retest.

On the contrary, if the $87,637 support level fails to hold, it would invalidate the bullish outlook and produce a lower low on the one-hour chart. This move would signal the breach of the uptrend market structure. Such a development could see Bitcoin trigger a 17% crash to $77,074.