The price of Bitcoin (BTC) rose 7.99% in the past week to reach a new all-time high of $99,655 on November 22. After that, the number one cryptocurrency saw a slight bounce in the last 48 hours as it fell to around $98,200. However, speculation of a major price correction continues to emerge given the astonishing rise in Bitcoin prices over the past seven weeks.
Why Bitcoin Should Move Above $100,535 – Analyst
in X Post on November 23Ali Martinez shared an interesting prediction regarding Bitcoin’s potential price movement. According to a popular cryptocurrency analyst, the TD Sequential indicator, used to detect potential price reversals, has indicated a sell signal on Bitcoin’s 12-hour chart, indicating an incoming price decline.
Martinez’s latest forecast is in line with popular expectations for a Bitcoin price correction amid a 61.76% rise in the asset’s price from $60,500 in early October. This idea stems from various trading metrics and indicators. For example, Bitcoin’s RSI has always remained in the overbought zone indicating the possibility of a sudden price pullback.
Moreover, fellow analyst Martin Reports BTC’s Fear and Greed Index is at a 4.5-year high at 94. In general, any Fear and Greed Index above 75 represents extreme greed among investors, which is extremely bullish but also provides room for overvaluation that precedes significant price corrections. .
What’s most disturbing, Marton Also notes Unrealized profit levels for Bitcoin traders have reached 57% and are gradually approaching the local peak of 69% in March 2024, which increases the possibility of a price correction.
According to Ali Martinez, if BTC undergoes a long-awaited correction as indicated by TD Sequential and other factors, the cryptocurrency market leader could fall to $91,583. Amid strong selling pressure, Bitcoin could fall to $85,610, indicating a potential decline of 12.64% from the current market price.
However, Martinez also posits that BTC could cancel the sell signal through the TD Sequential and avoid a major correction by closing above $100,535 on the daily 12-hour chart. Given Bitcoin’s recent price action and events such as the excitement around Donald Trump’s electoral victory coupled with increased ETF inflows, a continuation of the uptrend is certainly a strong possibility.
Bitcoin price overview
According to data from CoinMarketCap, Bitcoin is trading at $98,213, reflecting a 0.44% decline in the past day. In tandem, the daily trading volume of the asset stands at US$44.02 billion, after a 43.14% decline. but, Bitcoin remains largely profitable for long-term holders, with gains of 45.06% in the past 30 days. With a market capitalization of $1.95 trillion, the leading cryptocurrency remains the world’s largest digital asset.
Featured image from Fortune, chart from Tradingview