Since Donald Trump won the election on November 5, Bitcoin (BTC) has experienced a substantial rally, reaching highs above $108,000. However, this momentum has recently declined, with the digital currency falling below the critical $100,000 mark,
This has prompted analysts to consider a possible deeper correction with some experts believing that Bitcoin could fall to levels around $85,000 or even $75,000 before starting the journey up
Is It A Temporary Setback Or The Calm Before A Final Rise?
Morecryptoonl Analyzer high goals that current market dynamics indicate that there is a high probability that Bitcoin will move to $85,000. This projection comes from the observation that the recent wave of price action did not have the strength usually seen in bullish trends, without reaching major expansion levels.
The “overlapping and corrective nature” of the rally highlighted by the analyst lends further support to the view that a major pullback could be in the offing. If this situation emerges, it could represent the last major correction in the current bull market, setting the stage for a final price increase.
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Technical analyst Rekt Capital offers a different view, claiming that the idea of Bitcoin at $75,000 is a favorable entry point compared to its current price of around $97,000.
Rekt Capital also suggests that what seems like a bargain now may not have appeared so attractive when Bitcoin was at that level before.
Despite bearish sentiment from some experts, others believe the recent price correction is significant opportunity to buy. Analyst VirtualBacon argues that the market's reaction to Bitcoin's drop from $108,000 to $96,000 has been “exaggerated.”
Is Bitcoin Preparing for New Highs?
Virtual Bacon claiming that this decline is not indicative of a market collapse but a healthy consolidation phase within an ongoing bull market.
Historical data supports this view, as corrections of this type are often preceded by new highs. Key support levels, such as the 21 weekly moving average (EMA) around $79,000 and the 200 daily EMA near $73,000, remain intact, suggesting that even a short dip to these levels would not undermine the overall bullish structure -stability.
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The underlying economic conditions also play a crucial role in shaping Bitcoin's future, according to VirtualBacon. The recent Federal Reserve (Fed) actions, including medium level cut and a cautious approach to monetary policy, suggesting a stable economic environment.
While the Fed continues with its policy of quantitative easing (QT), it is expected that this will not continue forever. It looks like the US debt crisis will have to return to quantitative easing (QE), which has historically fueled bullish trends in crypto markets.
In summary, many are looking at the recent drop in the price of Bitcoin as a temporary solution rather than the end of the bull market. As long as Bitcoin maintains its position above critical support levels, the bullish trend remains intact.
At the time of writing, BTC is trading at $97,720, down 3% for the 24-hour period and over 2% for the week.
Featured image from DALL-E, chart from TradingView.com
