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Since Donald Trump’s election victory on November 5, Bitcoin (BTC) has experienced a massive surge, reaching a record high above $108,000. However, this motion The cryptocurrency has faltered recently, falling below the crucial $100,000 mark,
This has led analysts to speculate on a possible deep correction, with some experts believing that Bitcoin could fall to around $85,000 or even $75,000 levels before continuing its upward move.
Is this a temporary setback or a lull before the final surge?
Analyst Morecryptoonl highlighted Current market dynamics suggest that Bitcoin has ample potential to move towards $85,000. This assumption stems from the observation that the recent wave of price action lacked the strength typically seen in bullish trends, failing to reach key extension levels.
The “overwhelming and corrective nature” of the rally highlighted by the analyst supports the idea that a significant pullback may be imminent. If this scenario plays out, it could represent the last major correction in the current bull market, setting the stage for an eventual surge in prices.
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Technical analyst Rect Capital offers a contrary view, Said Emphatically The perception of Bitcoin at $75,000 as a favorable entry point is relative to its current price of approximately $97,000.
Rect Capital further suggests that what seems like a bargain now may not have seemed so attractive when Bitcoin was previously at that level.
Despite the bearish sentiment of some experts, others view the recent price correction as significant opportunity to buyAnalyst VirtualBeacon argues that the market reaction to Bitcoin’s fall from $108,000 to $96,000 has been “exaggerated.”
Is Bitcoin Preparing for New Record Highs?
Virtual Bacon emphasis on this This decline is not a sign of a market collapse, but rather a healthy consolidation phase within the ongoing bull market.
Historical data supports this view, as corrections of this nature are often preceded by new highs. Key support levels, such as the weekly 21 exponential moving average (EMA) near $79,000 and the daily 200 EMA near $73,000, remain intact, suggesting that even a brief decline at these levels will not destabilize the overall bullish structure.
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According to VirtualBeacon, underlying economic conditions also play a key role in shaping the future of Bitcoin. Recent Federal Reserve (Fed) actions, including nominal rate cut And a cautious approach to monetary policy, suggesting a stable economic environment.
While the Fed continues its policy of quantitative tightening (QT), the expectation is that this will not continue indefinitely. Withdrawals likely to be required due to growing US debt crisis quantitative easing (QE), which has historically fueled bullish trends in crypto markets.
In short, the recent decline in the price of Bitcoin is seen by many as a temporary blip rather than the end of a bull market. As long as Bitcoin maintains its position above important support levels, the bullish trend remains intact.
At the time of writing, BTC is trading at $97,720, which is down 3% for the 24-hour period and over 2% for the week.
Display image from DALL-E, chart from tradingview.com
