More rally above $100,000 or a painful correction?

TL;DR

Bitcoin (BTC) has broken above $80,000, and analysts are predicting further peaks that could reach $220,000. Despite the optimism, some metrics such as the elevated RSI suggest that the asset price could face a near-term correction, while some investors warn of a lower chance of a severe fall. Is there room for further growth?

Bitcoin (BTC) has broken out in the past week, with its price rising 20% ​​and hitting a new all-time high of over $82,000.

The increase could be attributed to Donald Trump’s victory in the US presidential election. Recall that during his campaign, the Republican presented himself as the right choice for supporters of the asset class, promising to let the industry (more specifically BTC) thrive.

The running of the bulls has generated a lot of excitement throughout the community, with many analysts suggesting that the demonstration is far from over.

User X Mikybull Crypto surmised that the “next area of ​​interest” is a new peak of $93,000. This could be followed by a potential consolidation and subsequent further rise to $121,000. Bluntz was also bullish, predicting price expansion into the $130,000-$150,000 range.

Gert van Lagen went even further, setting a goal of over $220,000. He argued that BTC’s valuation has “parabolically broken” out of a particular phase known as Base 4 and has now moved into “wave 5”.

The opposite scenario

BTC’s rally has been more than impressive, but some believe a devastating crash remains a plausible option. The popular investor who goes by the nickname Jason praised the BTC network for being “brilliant” as no nation state or hacker collective has found a way to compromise it.

He introduced himself as a BTC investor who jumped on the bandwagon when the price was $100-$200 and “never sold”. However, Jason surmised that there is still a small chance (less than 5%) for the valuation to crash to zero. “Do your own financial underwriting, obviously,” he concluded.

Some on-chain metrics suggest that BTC may experience a short-term pullback. The Relative Strength Index (RSI), which measures change and the speed of price movements, has soared to the bearish ratio of 80.

Readings above 70 usually indicate that the asset is overbought and a correction could be in the offing. On the other hand, anything below 30 is considered a buying opportunity.

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