Analysts on Monday drew parallels between Bitcoin’s BTC/USD recent performance and its infamous “Thanksgiving Day Massacre” in 2020, when prices dropped sharply before rebounding to new highs.
What Happened: Coinbureau co-founder Nic Puckrin on X highlighted that Bitcoin has fallen from just below $100,000 to $91,500 this week, a less severe 8% decline compared to the 17% drop in 2020 from Nov 25 to Nov 27.
In 2020, Bitcoin’s sharp decline set the stage for a sustained rally.
For 2024, factors like institutional interest from entities like BlackRock and ETFs, alongside macroeconomic variables such as inflation and interest rates, play a larger role in shaping the market outlook.
Puckrin noted that on-chain data reveals whales are accumulating Bitcoin, signaling a potential rebound.
Still, the broader market awaits confirmation of whether retail investors will join or if a deeper correction looms.
Puckrin himself views Thanksgiving dips as moments tied to volatility but often “turning points for new highs.”
Galaxy’s Head of Research, Alex Thorn, echoed this sentiment, reminding traders of Bitcoin’s 2020 Thanksgiving dip, which was followed by a tripling of its price over the next five months.
Recent Santiment data highlighted a dip in social sentiment for major cryptocurrencies like Bitcoin, Ethereum and Solana, which may weigh on Bitcoin stalling below $100,000.
Standard Chartered’s analysts anticipate a potential correction, identifying $85,000 to $88,700 as critical support zones before an uptrend resumes.
The bank’s forecast for Bitcoin includes a year-end target of $125,000 and $200,000 by the end of 2025.
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