Bitcoin (BTC) surged by 7.99% last week, reaching a record high of $99,655 on November 22. Following this peak, the cryptocurrency saw a minor drop in the last two days, settling around $98,200. There are ongoing concerns about a potential significant price correction, given BTC’s remarkable rise over the last seven weeks.
Analyst Insights: The Need for Bitcoin to Surpass $100,535
In a recent post on X dated November 23, analyst Ali Martinez shared an interesting outlook regarding Bitcoin’s price trajectory. He pointed out that the TD Sequential indicator, which forecasts price reversals, is signaling a sell on Bitcoin’s 12-hour chart, hinting at a possible downturn.
This forecast resonates with the prevalent belief among traders that Bitcoin may correct after its substantial 61.76% increase from $60,500 since early October. Various trading metrics support this view; notably, the Relative Strength Index has consistently indicated an overbought condition, raising the likelihood of a quick price retraction.
Moreover, analyst Maartunn points out that Bitcoin’s Fear & Greed Index has reached a 4.5-year high of 94. An index above 75 signifies extreme investor greed, which is bullish yet also suggests the asset might be overvalued, creating a risk of sharp corrections.
Additionally, Maartunn highlights that BTC traders’ unrealized profits have hit 57%, approaching a previous peak of 69% from March 2024, further indicating a heightened risk of price corrections.
Ali Martinez suggests that if Bitcoin does experience the anticipated correction, it could descend to $91,583. If considerable selling pressure continues, the price might drop further to around $85,610, illustrating a possible decline of 12.64% from its current level. However, he speculates that BTC could negate the sell signal by closing above $100,535 on the 12-hour daily chart. Given the recent market dynamics, including positive sentiments surrounding Donald Trump’s electoral prospects and increased ETF inflows, a continuation of the upward trend remains a strong possibility.
Current BTC Price Snapshot
As per CoinMarketCap, Bitcoin is currently priced at $98,213, reflecting a 0.44% decrease over the past day. The trading volume for Bitcoin stands at $44.02 billion, down by 43.14%. Nonetheless, Bitcoin remains a sound investment for long-term holders, boasting a 45.06% gain over the last month. With a market capitalization of $1.95 trillion, it continues to be the largest digital asset globally.
