Since November 5, following Donald Trump’s election win, Bitcoin (BTC) has seen a staggering increase, soaring to new heights beyond $108,000. However, this upward momentum has recently stumbled, causing Bitcoin to dip below the significant $100,000 threshold.
This downturn has led analysts to ponder over the possibility of a deeper correction. Some experts suggest that Bitcoin might descend to around $85,000 or possibly even $75,000 before it resumes rising.
Is It Just a Temporary Hitch, or the Calm Before the Final Surge?
Analyst Morecryptoonl emphasizes that recent market conditions point to a high possibility of Bitcoin moving towards $85,000. This prediction is based on the observation that the latest price movements lacked the vigor typically associated with bullish trends, failing to reach crucial extension levels.
The "overlapping and corrective nature" of this rally, noted by the analyst, further strengthens the expectation of a sizeable pullback. If this scenario comes to pass, it could signal the last notable correction of the current bull market, laying the groundwork for an ultimate price surge.
Related Reading
Offering a contrasting viewpoint, technical analyst Rekt Capital remarks that the idea of Bitcoin being a tempting buy at $75,000 is all about perspective, considering its recent approximate price tag of $97,000.
Rekt Capital goes on to suggest that what seems like a good deal now might not have appeared so alluring when Bitcoin last visited that price range.
Despite a few experts’ bearish outlooks, others perceive the latest price drop as a noteworthy buying opportunity. Analyst VirtualBacon argues that the market’s response to Bitcoin’s fall from $108,000 to $96,000 has been somewhat "exaggerated."
Is Bitcoin Gearing Up for New Record Highs?
VirtualBacon claims that this decline does not hint at a market collapse but rather a healthy period of consolidation within an ongoing bull market.
Historical patterns support this perspective, as corrections of this kind often precede fresh highs. Key support levels, like the weekly 21 exponential moving average (EMA) around $79,000 and the daily 200 EMA near $73,000, remain unbroken, indicating that even a short dip to these levels wouldn’t disrupt the overarching bullish framework.
Related Reading
According to VirtualBacon, the fundamental economic backdrop also plays a vital role in shaping Bitcoin’s prospects. Recent actions by the Federal Reserve, such as a mild rate cut and a cautious stance on monetary policy, point to a stable economic landscape.
Though the Fed continues with quantitative tightening (QT), it is not expected to be a long-lasting policy. The escalating U.S. debt crisis is likely to necessitate a return to quantitative easing (QE), historically a catalyst for bullish trends in crypto markets.
In sum, many see Bitcoin’s recent price dip as merely a temporary hurdle rather than the end of the bull market. As long as Bitcoin holds firm above key support levels, the bullish momentum remains intact.
At the time of this writing, BTC is trading at $97,720, marking a 3% drop in the past 24 hours and over 2% for the week.
