Analysts on Monday drew parallels between Bitcoin's (CRYPTO: BTC) recent performance and its infamous "Thanksgiving Day Massacre" in 2020, when prices dropped sharply before rebounding to new highs.

What Happened: Coinbureau co-founder Nic Puckrin on X highlighted that Bitcoin has fallen from just below $100,000 to $91,500 this week, a less severe 8% decline compared to the 17% drop in 2020 from Nov 25 to Nov 27.

In 2020, Bitcoin's sharp decline set the stage for a sustained rally.

For 2024, factors like institutional interest from entities like BlackRock and ETFs, alongside macroeconomic variables such as inflation and interest rates, play a larger role in shaping the market outlook.

Puckrin noted that on-chain data reveals whales are accumulating Bitcoin, signaling a potential rebound.

Still, the broader market awaits confirmation of whether retail investors will join or if a deeper correction looms.

Puckrin himself views Thanksgiving dips as moments tied to volatility but often "turning points for new highs."

Also Read: Anthony Scaramucci: Trump Win Is 'The Greatest Political Comeback In US History,' Crypto Surge Following It Was 3 Years Overdue

Galaxy's Head of Research, Alex Thorn, echoed this sentiment, reminding traders of Bitcoin's 2020 Thanksgiving dip, which was followed by a tripling of its price over the next five months.

Recent Santiment data highlighted a dip in social sentiment for major cryptocurrencies like Bitcoin, Ethereum and Solana, which may weigh on Bitcoin stalling below $100,000.

Standard Chartered's analysts anticipate a potential correction, identifying $85,000 to $88,700 as critical support zones before an uptrend resumes.

The bank's forecast for Bitcoin includes a year-end target of $125,000 and $200,000 by the end of 2025.

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Image created using artificial intelligence with Midjourney.