Sharp rise in Bitcoin after 36% fall, will it cross the limit of 1 lakh dollars again?

The world’s largest cryptocurrency Bitcoin was under pressure for the last few weeks. It fell nearly 36% from its recent high, causing panic among investors. But now the atmosphere seems to be changing. Global financial services firm BTIG says this big drop could actually be the beginning of a strong comeback for Bitcoin. According to BTIG analyst Jonathan Krinsky, Bitcoin is showing a reflex rally and has the potential to move towards $100,000 again.

Bitcoin gained momentum again

The price of Bitcoin is around $92,451 and it has increased by about 10% in just five days. Although it is still down 20% in the last one month, market experts believe that the recovery phase has now started. The reason for this is two big technical signals. First, Bitcoin was oversold, that is, so much selling had taken place that now a swing back was certain. Second, seasonal patterns. History shows that Bitcoin often makes a low in late November and then picks up in December.

Not only Bitcoin, other major cryptocurrencies are also gaining momentum. Ether is now at $3,075 after falling 24% last month and is up 13% in five days. BTIG estimates that Ether may return to the $3,400 level again. Similarly, Solana remains in trend with a gain of 12% and XRP by 15%.

Interestingly, amidst the weakness of crypto, two mining companies Cipher Mining and Terawulf are performing better. Cipher jumped 35% this week, while Terawulf went up 31%. BTIG says that the Crypto Miners Index is also stable and there is scope for further growth of up to 15%.

advice for investors

There were many reasons behind the recent selling by investors. Many people are withdrawing money from risky investments and going into safer options like gold. The concern about the expensiveness of shares in the AI ​​sector is also affecting the crypto market, because the same investor category remains active in both. At the same time, investors holding Bitcoin for a long time also sold to book profits, because they believe that Bitcoin shows big fluctuations in every four-year cycle.