Bitcoin Rally Loses Momentum: Could A Drop To $75,000 Signal The Final Correction?

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As a seasoned researcher with a knack for deciphering market trends and a keen interest in digital currencies, I find myself intrigued by the current state of Bitcoin. The recent dip below the $100,000 mark has sent ripples through the crypto community, with some analysts predicting a deeper correction while others see it as a temporary setback or a significant buying opportunity.

Ever since Donald Trump won the election on November 5, Bitcoin (BTC) has seen a significant surge, peaking at prices over $108,000. Lately, this upward trend seems to have slowed down, as the digital currency has dipped below the key threshold of $100,000.

Due to recent developments, analysts are contemplating the possibility of a more significant downturn. Some professionals predict that Bitcoin’s value might fall to approximately $85,000 or possibly drop as low as $75,000, after which it may resume its upward trend.

Is It A Temporary Setback Or The Calm Before A Final Surge?

According to analyst Morecryptoonl’s analysis, there’s a strong possibility that Bitcoin could rise towards $85,000 due to the current market conditions. This prediction is based on his observation that the recent price movements have shown less power than usual in bullish trends and have not reached expected extension levels.

According to the analyst, the repeated and adjusting pattern seen in the rally suggests that a substantial drop might soon occur. If this happens, it could mark the final significant adjustment in the current bull market, paving the way for a final price increase.

Technical analyst Rekt Capital presents an opposing viewpoint, suggesting that considering Bitcoin’s current price around $97,000, the idea of it being a good entry point at $75,000 is somewhat subjective.

Purchases that appear enticing today might not seem quite as appealing if Bitcoin’s value were at its previous level.

As an analyst, I perceive the current pessimism surrounding Bitcoin’s price correction from $108,000 to $96,000 as somewhat overblown. In my view, this dip presents a promising buying opportunity for investors.

Is Bitcoin Preparing For New Record Highs? 

According to VirtualBacon, the current decline doesn’t signal a market crash, but instead represents a period of consolidation in the midst of an expanding bull market.

The historical trend backs up this perspective, as such adjustments typically occur before record-breaking peaks. Important support zones, like the weekly 21 Exponential Moving Average (EMA) approximately at $79,000 and the daily 200 EMA close to $73,000, are still holding strong. This implies that even a temporary decline to these points would not disrupt the predominant bullish trend.

According to VirtualBacon, the state of the economy beneath Bitcoin’s surface significantly impacts its future trajectory. The latest moves by the Federal Reserve, such as a slight interest rate reduction and a careful management of monetary policy, indicate an economically steady landscape.

As the Federal Reserve maintains its quantitative tightening (QT) strategy, it’s generally understood that this won’t last forever. Given the escalating US debt situation, there’s a strong possibility that they’ll revert to quantitative easing (QE) again, which typically sparks optimistic sentiments in crypto markets.

To put it simply, although Bitcoin’s current drop in value has caused concern for some, it’s generally seen as a short-term hiccup instead of a sign that the bull market is over. As long as Bitcoin keeps holding its ground above crucial support points, the overall positive trend persists.

As I pen this down, Bitcoin is currently exchanging hands at approximately $97,720, marking a 3% decrease in the last 24 hours, and a slightly steeper decline of around 2% for the week.

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2024-12-20 14:11