Bitcoin Price Fluctuations: Analysts Predict Rebound to $96K

Bitcoin (BTC) is experiencing significant price fluctuations, with analysts suggesting a potential rebound to $96,000. According to Cointelegraph, Bitcoin's recent drop to around $80,500 has entered what is referred to as the discount zone, indicating a possible buying opportunity.

The Puell Multiple, a metric that assesses miners' daily revenue against the annual average, has fallen to 0.86, signaling that the market may be undervaluing Bitcoin at this level. Historically, when the Puell Multiple dips below 1, it often precedes significant upward movements in Bitcoin's price.

The last time this occurred was in April 2025 when Bitcoin was trading near $75,000, resulting in a 50% rally to an all-time high of $112,000 by May 2025. Furthermore, data from Capriole Investments shows that Bitcoin's MVRV Z-score has hit a two-year low, which often indicates significant undervaluation and potential for recovery.

This metric currently sits at 1.13, nearing a threshold that has previously signaled local bottoms, suggesting that Bitcoin could be poised for a rebound. In the short term, Bitcoin has shown signs of recovery, rising 8.6% from its local lows of $80,500, with a bullish bull flag pattern indicating a potential target of $96,800, a 10.6% increase from current price levels.

However, there are cautious voices in the market as veteran trader Peter Brandt warns that any rally may simply be a 'dead cat bounce' before further declines. Additionally, a report from Cointelegraph indicates that Bitcoin is on track for its worst November performance since 2018, down approximately 20% and echoing patterns seen during previous bear markets.

Despite these challenges, analysts from Bitfinex speculate that demand for Bitcoin could return soon, as there are signs of increasing whale interest and some analysts predict a local bottom could form this week.

However, the market is still volatile, and Bitcoin could see further declines if leverage continues to be flushed out, with some analysts suggesting a potential revisit of the $70,000 to $80,000 range before a sustainable recovery can occur.

Analysts like James Check caution that there could still be a significant amount of leverage remaining in the market, potentially leading to another liquidation event. The current market sentiment is a mix of optimism and caution, with the potential for a rebound to $96,000 contingent on the behavior of key market participants, particularly Bitcoin whales, and broader economic factors that may influence trading dynamics moving forward.