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Bitcoin Investors Fear Thanksgiving Crash as Price Hovers Below $90K
Understanding the BTC Thanksgiving Crash
As the US Thanksgiving approaches, many crypto investors are wary of a potential BTC Thanksgiving crash. The recent consolidation of Bitcoin’s price, following its all-time high of $99.6K, has raised concerns among market analysts. Just six days after reaching the ATH, Bitcoin saw a 9% drop to $91K before showing signs of recovery.
One of the most infamous BTC crashes in recent memory occurred on the 2020 US Thanksgiving day, when the price plummeted over 17% within a few hours. This event, known as the Thanksgiving Day Massacre, shook the entire crypto market as Bitcoin tumbled from $19,500 to $16,200 in a short period.
Investor Sentiment Amidst Price Consolidation
Despite bullish sentiments, the crypto market is currently in a state of decline, with Bitcoin traders hoping for a rally to $100K. However, the recent drop to $91K has prompted discussions of a potential Thanksgiving crash reminiscent of the 2020 event. Some analysts view this as an early Black Friday sale, an opportunity for buyers to capitalize on the dip.
It’s important to note that the recent price fluctuations are driven by long-term holders selling off and overbuying conditions rather than any specific event like the Thanksgiving crash. Although fear of a crash persists, the charts indicate a possible formation of a local bottom and eventual recovery.
Potential for a Sub-$90K Bitcoin Price?
Despite concerns of a Thanksgiving crash, Bitcoin remains up 35% over the month, making a significant drop below $90K less likely. Unlike 2020, Bitcoin’s current strength is bolstered by influential figures like President-elect Donald Trump and the success of the Bitcoin ETF, reducing the chances of sudden price drops.
Analysis of the 2020 BTC crash reveals that while major drops can occur, the recovery can be swift and impressive. Within days of the Thanksgiving Massacre, Bitcoin surged back to $20,000 and later crossed the $30,000 mark by year-end. Such resilience suggests that even if a crash occurs, recovery is imminent, setting the stage for potential new ATHs in the future.
It’s essential to conduct thorough market research before making any investment decisions in cryptocurrencies. The opinions expressed in this article are solely those of the author and do not constitute financial advice. Readers are encouraged to evaluate market conditions independently.
The information in the article is for informational purposes only. It does not constitute any investment advice. The author and CryptoBlockNews.com are not responsible for your profits or losses arising from your investments. Investment is ultimately based on many foundations such as knowledge, accumulation, experience, research and personal decisions.
