In the aftermath of Donald Trump’s election victory on November 5, Bitcoin (BTC) has experienced notable volatility, initially rallying to unprecedented levels above $108,000. Recently, however, this momentum has waned, with Bitcoin slipping below the pivotal $100,000 threshold. This shift has ignited discussions among analysts, with some speculating on a potential further decline. Experts suggest Bitcoin might dip to around $85,000 or even $75,000 before it could continue its upward trend.
Is It A Temporary Setback Or The Calm Before A Final Surge?
Analyst Morecryptoonl indicates that current market trends suggest a significant probability of Bitcoin reaching the $85,000 mark. This forecast is based on observations that the recent price movements lacked the robust strength characteristic of bullish trends, as they failed to reach critical extension levels. The “overlapping and corrective nature” of the rally, as highlighted by Morecryptoonl, supports the notion that a major pullback may be imminent. If this scenario unfolds, it could be the last significant correction before a final surge in the current bull market, potentially leading to new highs.
Contrasting Perspectives: Entry Points and Market Dynamics
Technical analyst Rekt Capital presents an alternative viewpoint, arguing that Bitcoin’s current price of approximately $97,000 frames the perception of $75,000 as a favorable entry point. Rekt Capital suggests that what appears as a bargain now may not have been seen as attractive when Bitcoin was previously at similar levels. Nevertheless, despite the bearish outlook from some quarters, others perceive the recent price correction as an opportune buying moment. Analyst VirtualBacon contends that the market’s reaction to Bitcoin’s drop from $108,000 to $96,000 has been “exaggerated.”
Is Bitcoin Preparing For New Record Highs?
VirtualBacon asserts that the recent decline is not indicative of a market collapse but rather a healthy consolidation phase within an ongoing bull market. Historical data bolsters this view, as corrections of this nature often precede new highs. Key support levels — such as the weekly 21 exponential moving average (EMA) around $79,000 and the daily 200 EMA near $73,000 — remain robust, suggesting that even a temporary dip to these levels would not undermine the overall bullish structure.
Economic Influences on Bitcoin’s Trajectory
According to VirtualBacon, underlying economic conditions significantly influence Bitcoin’s future. Recent actions by the Federal Reserve (Fed), including a modest rate cut and a cautious approach to monetary policy, suggest a stable economic environment. Although the Fed continues its policy of quantitative tightening (QT), expectations are that this will not endure indefinitely. The escalating US debt crisis is likely to necessitate a return to quantitative easing (QE), which has historically spurred bullish trends in crypto markets.
Conclusion: Assessing Bitcoin’s Bullish Potential
In summary, the recent dip in Bitcoin’s price is seen by many as a temporary setback rather than the termination of the bull market. As long as Bitcoin sustains its position above critical support levels, the bullish trend appears intact. At the time of writing, BTC is trading at $97,720, marking a 3% decline over the past 24 hours and over 2% for the week. The evolving market conditions and economic factors will continue to shape Bitcoin’s trajectory, potentially setting the stage for future gains.
