Bitcoin's recent ascent toward the $98,000 mark has reignited optimism among investors, suggesting a potential breakthrough beyond the $100,000 threshold. However, market analysts caution that a significant correction may precede this milestone.
Understanding the Point of Control (POC)
In trading, the Point of Control (POC) represents the price level with the highest traded volume, indicating a strong area of interest for both buyers and sellers. Currently, Bitcoin's POC is observed around the $94,000 to $96,000 range. This zone serves as a critical support level; a sustained drop below it could signal a deeper correction, while a rebound may reinforce bullish momentum.
Anticipated Correction Before the Surge
Historical patterns suggest that Bitcoin often experiences notable pullbacks before achieving new highs. Analysts from Bitget Research highlight the possibility of a 20–30% correction, potentially bringing prices down to the $70,000–$75,000 range, before a resurgence toward $100,000 . Such corrections are typical in volatile markets and can offer strategic entry points for investors.
Institutional Influence and Market Dynamics
The role of institutional investors and the performance of Bitcoin Exchange-Traded Funds (ETFs) are pivotal in shaping market trends. Recent data indicates a slowdown in ETF inflows, contributing to short-term price volatility. However, renewed institutional interest and strategic acquisitions, such as MicroStrategy's significant Bitcoin purchases, are expected to bolster the market and drive prices upward .
