BTC Approaches $94K, but Analysts Stick to $100K Short-Term Target

Bitcoin Dips to $94K Amid Market Correction, But Analysts Keep $100K Target Intact

Bitcoin (BTC) extended its decline into a third straight day, shedding another 3.5% in the past 24 hours to approach $94,000. The drop comes just a week after the cryptocurrency came close to breaking the $100,000 milestone, as profit-taking triggered a broader market pullback.

Weekly gains for BTC have shrunk from over 10% to a modest 3% as traders move to secure profits. Other major cryptocurrencies followed suit, with Solana (SOL), Binance Coin (BNB), Cardano (ADA), and Dogecoin (DOGE) registering losses of up to 7% over the same period.

The CoinDesk 20 Index, which tracks the performance of the largest cryptocurrencies by market capitalization (excluding stablecoins), slid nearly 3% in the past day, reflecting a broad market correction.

Analysts Call Dip a “Healthy Reset”

Despite the recent downturn, the $100,000 target for Bitcoin remains intact. Analysts attribute the correction, which could push BTC as low as $92,000, to “overheated leverage” in the market.

“This pullback stems from leverage overheating, with open interest and the estimated leverage ratio reaching annual highs,” said MAC_D, an independent analyst at CryptoQuant, in a report Tuesday. “A correction in the range of 10-20% should be seen as a healthy and natural reset.”

On-Chain Data Supports Bull Market Narrative

On-chain indicators, including MVRV (Market Value to Realized Value), NUPL (Net Unrealized Profit/Loss), and the Puell Multiple, continue to signal that Bitcoin remains in a bullish cycle with room for growth.

“Identifying key accumulation opportunities during these corrections is critical,” MAC_D noted. “The ‘Short-Term SOPR’ metric is particularly valuable for spotting these moments.”

Market Eyes Renewed Momentum

While the short-term outlook appears choppy, analysts see the current pullback as a momentary pause in a broader uptrend. Many investors are closely watching for signs of stabilization, with expectations that Bitcoin will resume its march toward $100,000 in the weeks ahead.

For now, the market correction is viewed as a necessary adjustment, paving the way for further growth as the bull market unfolds.