Since Trump's win in the US election on November 8th, Bitcoin has been pushing towards the $100,000 mark, peaking at $99,500 on November 23rd. Over the past month, its increase has totaled 37.6%.

However, starting from last weekend, Bitcoin has experienced its most significant correction since Trump's election, falling from around $99,000 to a morning low of $90,800. As of the writing of this article, it has slightly rebounded to $92,419, with a 24-hour drop of 2.3%.

Investors Begin Taking Profits

The reason Bitcoin has repeatedly failed to breach $100,000 might be that long-term investors have already made significant profits during the post-election celebratory surge and are now cashing out. While the short-term upward trend in Bitcoin might pause, this should be seen as a healthy correction within a bull market rather than a trend reversal. The Bitop market analysis team also believes that Bitcoin's valuation has not yet reached its peak.

Moreover, reaching $100,000 post-election is seen as inevitable, but a certain degree of correction is expected due to the high leverage currently in the market. Thus, Bitcoin's price correction is considered normal.

The Bitop market analysis team also advises investors to buy Bitcoin directly rather than stocks of companies related to Bitcoin, like MicroStrategy, as these companies might see more significant drops during market corrections.

Long-term Holders Still Expect Higher Prices

Despite Bitcoin surged to $90,000 after Trump's victory, long-term holders with approximately 14 million Bitcoins have all entered profitability. A significant portion of this resilience can be attributed to the robust buying power of spot Bitcoin ETFs, which absorbed over 90% of the selling pressure, providing crucial support to the price.

It's plausible that long-term holders, after realizing some profits, are still awaiting even higher prices to sell. This could explain why the market hasn't seen a cliff-edge drop, further reinforcing the notion that this decline is merely a healthy correction."

Disclaimer: None of the information contained here constitutes an offer (or solicitation of an offer) to buy or sell any currency, product or financial instrument, to make any investment, or to participate in any particular trading strategy.