The US Thanksgiving is just a few hours away, but all crypto investors are fearing the BTC Thanksgiving crash. This fear is ascending, especially with the token current performance, as the Bitcoin price is consolidating from its earlier ATH of $99.6K.
Just six days ago, Bitcoin achieved the ATH and was supposed to cross the $100K mark. Instead, the price consolidated more than 9%, dropping to $91K before recovering today. Regardless, many crypto analysts are concerned about the Thanksgiving BTC crash, which could push the value below $90K.
What’s the BTC Thanksgiving Crash?
Bitcoin has been part of the crypto industry for more than 15 years. It had a tough beginning, and it took years before investors acknowledged this industry. Meanwhile, the BTC price plummeted multiple times despite its exponential growth. One such major crash happened on the 2020 US Thanksgiving day when the Bitcoin price dropped more than 17% within a few hours.
At that time, the token was proudly trading at around $19,500, but within a few hours, the price dropped to $16,200, shocking the entire crypto market. After that, it is known as the Thanksgiving Day Massacre, which brought the massive BTC Crash.
Interestingly, the same Thanksgiving crash brought heavy gains days after the incident. As crypto analysts Bitcoin Historian revealed, the people who bought the dip at the Thanksgiving Massacre have made 480% or 5x returns.
#Bitcoin crashing below $16k, exactly 4 years ago. They called it the “Thanksgiving Day Massacre.”
Everyone who bought the dip is up 480% pic.twitter.com/iCh3NlSI3a
— The Bitcoin Historian (@pete_rizzo_) November 26, 2024
Investors Fear BTC Crash Following Consolidation
The entire crypto market is down today, despite the investors’ greedy sentiments. This was an unexpected moment, as the investors were anticipating the Bitcoin rally to $100k. Instead, it dropped to $91k, which many analysts like Ali claimed to be an early Black Friday sale, where people could buy the dip.
However, instead of seeing it as an opportunity, the fear continued to build up with the discussion of the Thanksgiving crash or the Thanksgiving Day Massacre. However, it has played no role in the crypto market crash. Instead, it is the result of the long-term holder’s selloff and overbuying conditions, which pushed the tokens down.
However, the analysts see a constant recovery from here, as the charts show the signs of the formation of the local bottom.
Will the Thanksgiving Massacre push BTC Down $90K?
Despite the ongoing consolidation, the Bitcoin price is up by 35% over the month, which discards the possibility of the Thanksgiving day Bitcoin crash, but there is more. Compared to 2024, the BTC is much stronger today, where it has not only the support of big leaders like President-elect Donald Trump, but the success of the Bitcoin ETF has decreased the possibility of such sudden drops for this token. More importantly, in 2020, the market witnessed a sudden drop, but that is less likely to happen considering the ongoing consolidation. Even if it happens, it will be part of this consolidation whose recovery will be faster.
Regardless, there is one very important thing to consider before panicking in fear of an upcoming Thanksgiving crash. On analyzing the 2020 BTC crash, the charts do showcase a major crash, but its recovery was far more impressive, maintaining the investor’s trust in the token. Within four days, the token had returned to $20,000 and even achieved the $30,000 mark by the year-end.
Most importantly, just a few months after this, the Bitcoin price attained an ATH, and the same is likely to happen this year if the Thanksgiving massacre took place.
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