"84,000 Dollar Settlement is Key" Bitcoin Expected to Break $100,000 After Short-Term Correction

▲ Bitcoin (BTC) ©Dasol Ko

As the preference for safe-haven assets spreads in global stock markets, the virtual asset market is also experiencing strong downward pressure, following the stock market's decline. With the leading cryptocurrency giving up the $80,000 mark and the total market capitalization shrinking to $2.62 trillion, a short-term correction cloud hangs over the entire market.

According to FXStreet, an investment media outlet, on May 8 (local time), the total market capitalization of virtual assets decreased by approximately 2% over the past 24 hours. The performance varied among coins: Internet Computer (ICP) rose by 9%, Zcash (ZEC) by 3.6%, and Tron (TRX) by 1.4%, performing well. In contrast, Dogecoin (DOGE), Toncoin (TON), and Dash (DASH) recorded declines of 3% to 4%, showing poor performance. Notably, while the technology-focused Nasdaq 100 index has risen by 13% since the beginning of the year, the virtual asset market has fallen by 12%, failing to fully keep pace with the stock market's sharp upward momentum.

The leading cryptocurrency, Bitcoin (BTC), was rejected at its key resistance level, the 200-day moving average, and pushed below $80,000. Short-term profit-taking, triggered by its entry into the overbought zone, is causing a correction at the top of its ascending channel. The media outlet analyzed the current lower support line of the ascending channel at $77,500 and diagnosed that for the overall upward trend to be considered broken, the recent low of $75,000 must be completely breached.

Despite the price drop, the strong buying sentiment of large investors is supporting the market's downside. According to Glassnode, an on-chain data analytics firm, large investors on major trading platforms significantly increased their Bitcoin long positions over the past two months, showing strong confidence in an uptrend. Galaxy Digital also stated that while selling pressure on Bitcoin has noticeably decreased, the number of waiting buyers continues to grow, emphasizing that to reach the ultimate goal of $100,000, Bitcoin must first establish a stable base above $84,000.

Long-term structural changes in the market and potential risk factors were also highlighted. The Chicago Mercantile Exchange (CME) plans to launch the industry's first regulated Bitcoin volatility futures product on June 1, utilizing its own index calculated based on options market data. Meanwhile, warnings about technological threats continued, with research suggesting that quantum computers could break blockchain's cryptographic security as early as 2030. Furthermore, despite Bitcoin Core developers fixing critical security vulnerabilities, a significant number of nodes are still exposed to older versions.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*