Analyst Reveals Bitcoin Key Support Levels For Reaccumulation Details
The price of Bitcoin showed a highly positive reaction to Donald Trumps emergence as the next US President, gaining by 9.62% in the past week according to data from CoinMarketCap. Amidst this price rally, Bitcoin established a new all-time high at $77,252 on November 8 but has since retraced by over 0.5%. Commenting on the assets potential next movements, analyst Ali Martinez postulates BTC may be set for significant corrections which may present opportunities for reaccumulation.
Bitcoin Likely To Fall To $69,000 Heres How
In an X post on November 9, Martinez predicted that Bitcoin may finally record some significant price pullback, after days of bullish uptrend triggered by US election results and the Federal Reserves latest decision to initiate a 25 bps rate cut.
Following the premier cryptocurrencys descent from above $77,000, Martinez explains the price movement indicates a fall from a rising wedge which is a chart pattern that signals a potential reversal in an uptrend due to converging highs and lows. If this signal holds, the popular crypto analyst predicts Bitcoin could fall to around $73,900. Albeit, intense selling pressure could cause a further decline to $71,500, with $69,000 emerging as a strong support level in a worst-case scenario.
Interestingly, Ali Martinez shares he has set buy orders at all these support regions as any potential price recorrection by Bitcoin presents a good opportunity for massive purchases at lower prices. This trading strategy emerges from the general belief that the Bitcoin bull season is still in its early phase despite significant price rallies in the past few weeks. Analysts continue to postulate a six-figure price target by the end of 2024, indicating potential for magnanimous price gains in the upcoming year.
BTC Leverage Ratio Hits 2-Year High
In other news, data from analytics firm IntoTheBlock shows that the ratio of Bitcoins Open Interest to its market cap is 5.93%, which is the highest value of this metric since the FTX collapse in November 2022. This development indicates that traders are holding a high level of leveraged positions, which can result in drastic volatility levels upon any minute price changes, thus adding to the growing sentiment around an incoming price correction.
At the time of writing, Bitcoin exchanges hands at $76,740 following a 0.70% decline in the past 24 hours. Meanwhile, the assets trading volume is down by 44.63% and valued at $31.87 billion. However, the maiden cryptocurrency continues to retain global headlines following its 27.76% price gain in the last month, resulting in a market cap value of $1.51 trillion.
Text source: NewsBTC
