In the past week, cryptocurrencies faced significant setbacks, but the market is currently recovering. Bitcoin (BTC) has just surpassed the $90,000 threshold. However, it is crucial for the narrative of short-term investors capitalizing on sales and plunging BTC back down to end. So, what exactly is going on in the cryptocurrency world?
Bitcoin Hits the Headlines
Just minutes ago, BTC surpassed the $90,000 mark and at the time of writing, it is stationed just below this threshold. As the U.S. markets rally during the Thanksgiving holiday, cryptocurrencies are joining the bandwagon. U.S. markets will remain closed for the holiday until Monday. If cryptocurrencies maintain this positive sentiment over the holiday period, it could pave the way for significant rallies in altcoins, at least in the short term. Sentiment is crucial, especially when U.S. markets will operate for a half-day on Friday; historically, the data confirms that stocks generally perform well between Thanksgiving and Christmas.
The breaking of the $91,400 level was a region where the decline in cryptocurrencies accelerated. Recuperation of this level paves the way for a range of $94,000 to $97,000. The options market indicates a strong presence around the $100,000 mark, and there is potential for prices to reach six figures by Friday.
However, it is essential to remember that short-term investors often take any rise as a selling opportunity, and those anticipating deeper dips forewarn of a possible fake peak around the $104,000 mark. The cost of increased volatility in futures trading can be hefty, so it is crucial to set stop levels wisely.