Bitcoin, the world’s largest digital asset, recorded significant market gains in the past week, continuing an uptrend that began in early October. Data from CoinMarketCap reveals that Bitcoin surged by 10.58% over the last week as pro-crypto candidate Donald Trump emerged as the US President-elect on November 5, followed by a 25 basis point rate cut by the US Federal Reserve.
With the crypto market leader reaching new all-time highs daily, analyst Ali Martinez has released a new price target, contingent on a specific condition. Amidst the ongoing Bitcoin price rally, Martinez predicts that the digital asset could reach a local peak of $85,360. This price action, however, is dependent on Bitcoin’s value remaining above $71,480. This prediction is based on data from the MVRV Deviation Pricing Bands, a trading tool that identifies extreme bullish and bearish market conditions by comparing Market Value to Realized Value (MVRV).
Martinez’s latest insight into Bitcoin’s trajectory comes on the heels of a previous prediction in which he forecasted that the leading cryptocurrency would retrace to around $71,500 after hitting the $78,000 mark. With Bitcoin now within range of this price target after recently crossing $77,000, it is crucial for market bulls to prevent any retracement below $71,480. Falling below this threshold could lead to a further decline to $66,000, where the next major resistance lies.
Conversely, Bitcoin is also strategically positioned to exceed $78,000, potentially reaching Martinez’s target of $85,360 without experiencing any projected price pullback, as market sentiment remains highly bullish due to several factors. In addition to Donald Trump’s electoral victory, signaling a forthcoming crypto-friendly stance by the US Government, large inflows into Bitcoin Spot ETFs in recent weeks have bolstered investor confidence in Bitcoin’s ongoing profitability. Nonetheless, all investors are advised to stay cautious, as the crypto market is known for its high levels of volatility and sudden price movements.
In other developments, data from analytics firm Santiment shows that Bitcoin’s rise above $77,000 has altered the social narrative, with the broader crypto community anticipating a continual rise to $80,000. According to Santiment, whenever crypto enthusiasts have been overly eager about the $80,000 mark in the past month, Bitcoin has tended to experience a price retrace. As such, there is a need to temper growing notions around FOMO to allow Bitcoin to sustain its current price rally.
At the time of writing, Bitcoin is trading at $76,395, reflecting a gain of 0.49% in the past 24 hours.
