Since Donald Trump’s election victory on November 5, Bitcoin (BTC) has experienced a substantial rally, peaking at an impressive $108,000. However, recent weeks have seen this momentum falter, with Bitcoin dropping below the crucial $100,000 threshold. This decline has led analysts to ponder whether we might see a more significant correction, speculating that Bitcoin could dip further, potentially hitting around $85,000 or even $75,000, before resuming its upward trend.
Is this merely a temporary hiccup, or is it the calm before a significant surge? Analyst Morecryptoonl points out that current market dynamics indicate a strong possibility of Bitcoin retracing to $85,000. This forecast is based on the observation that the recent price movements lack the typical vigor associated with bullish trends. The analyst notes the “overlapping and corrective nature” of the rally, which points toward a possible upcoming pullback. Should this scenario play out, it may just be the final significant correction of this bull market, paving the way for a subsequent surge in prices.
Contrasting this view, technical analyst Rekt Capital suggests that perceiving Bitcoin at $75,000 as a bargain is subjective, especially compared to its current price hovering around $97,000. Rekt Capital argues that what feels like an attractive entry point now might not have seemed so appealing during previous highs.
Despite the pessimism from some quarters, others interpret the recent price correction as a valuable buying opportunity. Analyst VirtualBacon contends that the market’s response to Bitcoin’s decline—from $108,000 to $96,000—has been somewhat “exaggerated.”
But is Bitcoin gearing up for new record highs? VirtualBacon believes that this downturn doesn’t signify a market collapse but represents a healthy consolidation phase within a continuing bull market. Historical trends suggest that corrections like this often precede new peaks. Key support levels, such as the weekly 21 exponential moving average (EMA) around $79,000 and the daily 200 EMA nearing $73,000, are still secure. This stability indicates that even a slight dip to these levels might not derail the overall bullish momentum.
The broader economic conditions are also pivotal in determining Bitcoin’s trajectory, according to VirtualBacon. Recent actions from the Federal Reserve (Fed), including a modest rate cut and a cautious monetary policy, imply a stable economic backdrop. While the Fed maintains its quantitative tightening (QT) strategy, it is anticipated that this won’t last indefinitely. The looming US debt crisis may soon require a return to quantitative easing (QE), a move that has historically triggered bullish markets in cryptocurrency.
In conclusion, the current dip in Bitcoin’s value is interpreted by many as a fleeting setback rather than the end of its bullish journey. As long as Bitcoin stays above critical support levels, the optimistic trend appears to remain intact. At the moment, Bitcoin is trading at $97,720, experiencing a 3% dip in the past 24 hours and a 2% decrease over the week.
