Bitcoin’s price has soared in response to Donald Trump’s announcement as the next US President, experiencing a 9.62% increase over the past week, as per data from CoinMarketCap. This surge propelled Bitcoin to a new all-time high of $77,252 on November 8, although it has since retracted by over 0.5%. Analyst Ali Martinez suggests that this uptrend might soon encounter significant corrections, potentially offering opportunities for reaccumulation.
On November 9, Martinez posted on social media platform X, predicting that Bitcoin could see a considerable price dip soon. This forecast follows the bullish trends triggered by the US election results and the Federal Reserve’s decision to implement a 25 basis points rate cut.
Martinez pointed out that Bitcoin’s recent descent from above $77,000 indicates a fall from a rising wedge pattern—a chart formation that often signals a possible reversal in an uptrend due to converging peaks and troughs. Should this pattern hold, Martinez expects Bitcoin to fall to around $73,900. He also noted that intense selling pressure could push the price even lower, with $71,500 and $69,000 emerging as crucial support levels in a worst-case scenario.
Martinez explained that he has set buy orders at these support levels, viewing any potential price correction as a prime opportunity for substantial purchases at lower prices. This trading approach stems from a widespread belief that the Bitcoin bull phase is still in its early stages, despite the significant price increases seen in recent weeks. Analysts continue to anticipate that Bitcoin could reach a six-figure price target by the end of 2024, suggesting substantial gains in the coming year.
In related news, data from analytics firm IntoTheBlock reveals that the ratio of Bitcoin’s Open Interest to its market cap has reached 5.93%—the highest since the FTX collapse in November 2022. This high leverage ratio suggests that traders are holding numerous leveraged positions, which could lead to extreme volatility with even minor price fluctuations. This further fuels speculation about an imminent price correction.
At present, Bitcoin is trading at $76,740, reflecting a 0.70% decline over the past 24 hours. Meanwhile, its trading volume has dropped by 44.63%, now standing at $31.87 billion. Nonetheless, the cryptocurrency continues to make global headlines with a 27.76% price gain over the last month, bringing its market cap to $1.51 trillion.
