Bitcoin Price Prediction: BTC Eyes $100k a Second Time After Intra-Day Correction

Highlights:

• Bitcoin trending back towards $100k after correction to $92k
• Correction wiped out $300 million in leveraged longs
• Bitcoin rebound triggered by appointment of pro-crypto SEC chairman

Bitcoin experienced a sudden steep correction today that saw it drop to a low of $92k. However, bulls have regained control, and at the time of going to press, Bitcoin was trading at $98,145. Despite the price recovery, Bitcoin is still in the red in the day, down by $4.48%.

Trading volumes have also declined sharply in the day, an indicator that most traders are staying away from the market, waiting for it to stabilize. Nonetheless, the price action in the last 24 hours has had its fair share of losers, especially the leveraged longs, who are aiming for even higher prices.

Correction Liquidates $303 Million in Longs

Data shows that the sudden Bitcoin correction from $103k to $92k liquidated $303 million of leveraged long positions. Analysts predict that with the over-leveraged longs flushed out, Bitcoin could see a more sustainable push higher, cruising through the $100k level with ease a second time.

One such analyst is Felix Hartmann of Hartmann Capital. Hartmann noted that the sudden liquidation of millions of dollars in longs presented created a scenario where there was a 70% chance of going higher and a 30% chance that the correction could continue. He noted that the 30% scenario could be triggered if most investors perceived the correction as an end of the bull rally, and started taking profits.

Other traders are holding similar views on the flash crash. According to Tony Sycamore, a market analyst, the sharp correction could mean that Bitcoin has hit a plateau. He noted that this means Bitcoin could enter a period of consolidation before another leg up is witnessed.

Sycamore’s analysis, like others who expect a plateau, is based on past price action. In March this year, Bitcoin rallied to a high of $73,679. It then consolidated between $53k and $72k for months before the recent rally that pushed it to the Dec 5 high of $103k.

Ugly price action here in #Bitcoin

This morning we noted that after yesterday's burst above $100k, there had been very little follow-through buying. We also highlighted signs of exhaustion and bearish divergence, which are excellent indicators of a short-term high.

Since our… pic.twitter.com/kKsR3H8bBn

— Tony Sycamore_IG (@Tony_Sycamore) December 5, 2024

Traditional Finance Taking an Interest in Bitcoin

Despite these mixed predictions, the odds favor a continuation of the momentum that Bitcoin has built up so far. That’s because the rally through $100k is likely to see traditional finance start taking Bitcoin more seriously.

This is already evident in the fact that Bitcoin ETFs continue to record strong positive inflows despite the inter-day volatility. This could help push Bitcoin push higher going forward especially now that Bitcoin’s price has breached the $100k price level once.

Macro Environment Positive for Bitcoin Price

The macro environment is also pretty bullish for Bitcoin. Yesterday, Trump announced that he had nominated Paul Atkin as the next SEC chairman. This is a person who is known for his pro-crypto stance. His appointment reinforces the growing confidence that the incoming US administration will be pro-crypto.

BREAKING 🔥 🔥

🇺🇸Trump officially selected pro-crypto Paul Atkins to replace Gary Gensler as SEC Chair.#BTC #Crypto 🚀🚀 pic.twitter.com/qjjGDHWAik

— Wise Advice (@wiseadvicesumit) December 4, 2024

This means money could flow into Bitcoin, especially now that it is already sending strong bullish signals. This also explains why the flash crash in the price of Bitcoin today is being bought up, pushing the price back toward the $100k level as seen in the charts.

Technical Analysis – Bitcoin Price in a Rebound After Correction

From a look at Bitcoin’s intra-day chart, the price is in sharp rebound after hitting a low of $92,147. If the current momentum continues, the key level to watch would be $99,053, now a key intra-day resistance level.

If bulls push Bitcoin through this level, a rally back to the new high of $103,594 could follow. With all the bullish factors around Bitcoin at the moment, the odds of a rally to $103k or even higher are within reach in the day.