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Since Donald Trump’s election victory on November 5, Bitcoin (BTC) has had a massive rally, reaching record highs above $108,000. However, this pressure recently crashed, when the crypto currency dropped below the critical value of $100,000,
This has prompted analysts to speculate about a possible deep correction with some experts believing that Bitcoin could sink to levels around $85,000 or even $75,000 before resuming its upward trajectory.
Is It A Temporary Regression Or Calm Before The Final Surgery?
Morecryptoonl analyst highlights that current market forces suggest a high probability of Bitcoin moving towards $85,000. This speculation stems from the observation that the recent wave of price action lacks the strength commonly seen in bullish trends, failing to reach significant levels of expansion.
The “overlapping and corrective nature” of the rally highlighted by the analyst also supports the view that a significant reversal may be imminent. If this scenario occurs, it could represent the last major correction of the current bull market, setting the stage for the final rally in prices.
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Technical analyst Rekt Capital offers a different view, asserting that the view of Bitcoin at $75,000 as a favorable entry point is relative to its current price of about $97,000.
Rekt Capital also suggests that what appears to be a profit now may not have seemed attractive when Bitcoin was at that level.
Despite bearish sentiments from some experts, others see the recent price correction as significant buying opportunity. A VirtualBacon analyst says 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 he asserts that this decline does not indicate a market collapse but rather a healthy phase of consolidation within an ongoing bull market.
Historical data supports this view, as corrections of this type often precede new highs. Key support levels, such as the 21 weekly exponential moving average (EMA) around $79,000 and the 200 daily EMA near $73,000, remain firm, suggesting that even a brief dip at these levels will not dampen the overall formation.
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Fundamental economic conditions also play an important role in shaping Bitcoin’s future, according to VirtualBacon. Recent actions of the Federal Reserve (Fed), including low level reduction and a cautious approach to monetary policy, suggesting a more stable economic environment.
While the Fed continues its quantitative tightening (QT) policy, it is expected that this will not continue indefinitely. The growing US debt crisis may need to be reversed decrease in value (QE), which has fueled a historically bullish trend in crypto markets.
In short, the recent dip in the price of Bitcoin is viewed by many as a temporary setback rather than the end of a bull market. As long as Bitcoin maintains its position above key support levels, the bullish trend remains intact.
At the time of writing, BTC is trading at $97,720, down 3% in the 24-hour period and up 2% for the week.
Featured image from DALL-E, chart from TradingView.com
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