Bitcoin may experience a sharp correction after updating its historical high

Bitcoin BTC $104,887.41 Bitcoin -2.01% Market capitalization $2.08 trillion VOL. 24 hours $3.68 billion has overcome the psychological barrier of $ 100,000 for the first time in history, reaching $ 103,620. Despite this record growth, analysts warn of the possibility of a sharp collapse due to the accumulation of factors that could cause a wave of sales.

The recent dynamics of bitcoin are beginning to show signs of weakening. Although the price is rising, the RSI (Relative Strength Index) is forming a decline, indicating a bearish divergence. This could mean that significant selling pressure is approaching.

According to CryptoQuant, the volume of bitcoin entering exchanges exceeds the volume of bitcoin being withdrawn. This may indicate an increased willingness of investors to sell assets. Despite this, demand for derivatives remains strong, with the volume of open contracts reaching a new record of $ 65.23 billion.Factors affecting a possible correction:

• Pressure from holiday sales: Traditionally, at the end of the year, many investors decide to take profits. Especially those who bought bitcoin at much lower prices.
• Behavior of asset holders: high current prices can stimulate sales, causing a large-scale correction.
• Technical signals: a bearish divergence on the charts is an additional signal that a potential drop is imminent.

Despite the optimism and strong demand, many analysts believe that the market is preparing for a correction. It is predicted that bitcoin may return to levels below $ 100,000 before attempting a new breakout.