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Bitcoin (BTC) has been on a tear lately, hitting several all-time highs (ATH) since Donald Trump won the 2024 US presidential election. Although the top cryptocurrency has seen a slight pullback over the past 24 hours, A rebound to a previous price level may cause problems for bears.
Bitcoin bears could be in trouble
according to analysis Shared by cryptocurrency analyst Ali Martinez on X, more than $800 million is at risk of liquidation if the major digital asset regains the $93,000 price level. Notably, the current ATH price of BTC is $93,477.
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At the time of writing, Bitcoin is trading at $89,480, down 1.9% over the past 24 hours. On the 4-hour chart, the next notable support level for BTC appears to be located around $86,000.
The digital asset has already tested this support level three times, and a further decline to this price could see BTC fall towards $81,600, the next major support. If BTC fails to hold above $81,600, a drop to $79,700 may follow.
While a decline in Bitcoin price would favor the bears, a recovery to the $93,000 level could hurt them severely. Such a move would risk liquidating more than $800 million, which could force bearish traders to capitulate.
Data The Coinglass website shows that contracts worth more than $508 million were liquidated in the past 24 hours. Of this amount, $355 million was long, while $153 million was short.
Recent analysis by leading cryptocurrency analyst @CryptoKaleo suggests Martinez’s warning to bears may be justified. According to CryptoKaleo, BTC could retreat to $86,000 before embarking on another rally to set new ATHs – possibly exceeding $100,000. The analyst stated:
Just step back a little and range a little more and then send over $100k. I honestly think this is the best alternatives scenario if we get it one way or another. We will be looking for outperformance as BTC accumulates around $90k.
What’s behind BTC’s operation?
Multiple factors have contributed to BTC’s historical price movement, including the halving earlier this year, the approval of Bitcoin exchange-traded funds (ETFs), and to rise Institutional adoption of digital assets.
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However, Trump’s victory in the 2024 US presidential election – an outcome seen as pro-cryptocurrency – served as a major catalyst for Bitcoin’s rise. Since Trump’s victory on November 5, Bitcoin has risen from around $69,000 to a high of $93,000, recording gains of more than 30% in just 10 days.
Despite this impressive price rise, experts point out that Bitcoin may have more room to grow. For example, a recent research report He predicts BTC’s bullish momentum may continue until mid-2025 where it is expected to reach its peak.
Additionally, relatively low profit taking during this uptrend can add to this to push BTC to new heights. However, bulls must stay put to caution There is a large gap on the Chicago Mercantile Exchange around the $78,000 level, which could be a magnet for a price correction.
At the time of writing, the total cryptocurrency market cap stands at $2.904 trillion, reflecting a 3.7% decline over the past 24 hours. Meanwhile, Bitcoin dominance stands at 60.97%, confirming Bitcoin’s continued strength in the market.
Featured image from Unsplash, Charts by X, Coinglass, and Tradingview.com