Bitcoin has been on a rollercoaster ride in the past week, with its price reaching a new all-time high of $99,655 on November 22. However, the cryptocurrency has since experienced a slight retracement, falling to around $98,200 in the past 48 hours. Speculations of a major price correction loom as Bitcoin’s impressive rally over the past seven weeks has raised concerns among analysts and traders.
In a recent post on November 23, popular crypto analyst Ali Martinez shared an intriguing prediction regarding Bitcoin’s potential price movement. Utilizing the TD Sequential indicator to spot potential price reversals, Martinez indicated a sell signal on Bitcoin’s 12-hour chart, hinting at a potential price dip in the near future. This forecast aligns with the general expectation of a price correction given Bitcoin’s substantial 61.76% price gain from $60,500 in early October.
Various trading metrics and indicators further support the notion of an imminent price correction for Bitcoin. The Relative Strength Index has consistently remained in the overbought zone, signaling the potential for a sudden price pullback. Additionally, the Fear & Greed Index for BTC has hit a 4.5-year high of 94, indicating extreme greed among investors. While this is typically bullish, it also suggests potential overvaluation that could precede significant price corrections.
Another concerning metric highlighted by analyst Maartunn is the unrealized profit levels of Bitcoin traders, which have reached 57% and are approaching the local peak of 69% seen in March 2024. This increasing level of unrealized profits adds to the likelihood of a price correction in the near term.
According to Martinez, if Bitcoin undergoes the expected correction, it could potentially fall to $91,583 and even further to $85,610, representing a 12.64% decline from its current market price. However, Martinez also suggests that Bitcoin could avoid a major correction by closing above $100,535 on the 12-hour daily chart. Recent events such as excitement surrounding Donald Trump’s electoral victory and increased ETF inflows have also contributed to the possibility of an uptrend continuation for Bitcoin.
As of the latest data from CoinMarketCap, Bitcoin is trading at $98,213, reflecting a 0.44% decline in the past day. The daily trading volume stands at $44.02 billion, marking a 43.14% decrease. Despite the recent fluctuations, Bitcoin remains profitable for long-term holders, with gains of 45.06% in the past 30 days. With a market cap of $1.95 trillion, Bitcoin continues to hold its position as the world’s largest digital asset.
In conclusion, Bitcoin’s price movement in the coming days will be crucial as it navigates the potential for a significant correction. Traders and analysts are closely monitoring key levels and indicators to gauge the future direction of the cryptocurrency. Whether Bitcoin will continue its upward trajectory or experience a pullback remains to be seen, but the market sentiment suggests a cautious approach as volatility and uncertainty persist in the digital asset space.
