Volatility Expected as Bitcoin Approaches $100K, Says OKX CMO

As Bitcoin approaches the $100,000 mark, heightened volatility is expected, according to Haider Rafique, the Global Chief Marketing Officer at OKX. Bitcoin came close to this psychological resistance level last week, reaching $93,428, but fell short of breaking through. Rafique explained that this pullback was primarily triggered by “profit-taking” among long-term Bitcoin holders.

Rafique noted that many long-term investors who accumulated Bitcoin around the $30,000 level are now cashing out, realizing returns of two to three times their original investment. This has positioned the $100,000 level as a key target for profit-taking and liquidation. However, this selling pressure is being countered by strong buyback momentum from institutions like MicroStrategy, which continue to accumulate Bitcoin. These institutional purchases reduce available liquidity on exchanges, creating upward price pressure.

At the same time, Rafique pointed out that the current long/short ratio on Bitcoin shows a slightly bearish sentiment, with more short positions than long ones. However, he cautioned that this setup is precarious, and as Bitcoin nears $100,000, “dual-sided pressure” could emerge. On one hand, long-term holders are likely to take profits, adding sell-side pressure. On the other hand, heavily leveraged short positions could face liquidations if Bitcoin crosses key price thresholds, triggering a cascade of buy orders to cover those positions. This dynamic could result in sharp price swings in either direction.

Despite the potential for short-term pullbacks, Rafique believes these corrections are unlikely to cause widespread panic or last for extended periods. Instead, he suggested that these dips could be seen as attractive buying opportunities for investors. He cited Bitcoin’s historical performance, such as when it dropped to $50,000 and quickly rebounded to $60,000 due to strong buying demand.

Other market analysts share a similar view. In a November 26 post on X, CryptoQuant CEO Ki Young Ju noted that 30% pullbacks are not uncommon during parabolic bull runs. He pointed to Bitcoin’s 2021 cycle, where it surged from $17,000 to $64,000 despite experiencing multiple sharp corrections. Ju advised investors to manage their risks and avoid “panic selling at local bottoms,” emphasizing that the market is still in a “bull market.”

Analysts at QCP Capital also echoed these views, stating that the recent corrections should not be cause for panic. They described Bitcoin’s current market behavior as simply taking a “breather” after a strong rally, suggesting that the market remains in a positive upward trend.

In summary, both Rafique and other analysts agree that while volatility is expected as Bitcoin nears the $100,000 level, the overall market remains in a bullish phase. Short-term price corrections could offer buying opportunities rather than trigger widespread panic selling. Volatility may create significant price swings, but these fluctuations could be temporary, providing strategic entry points for investors who are prepared to seize them.