Bitcoin Nears $90,000: Analyst Says $100K Hype Could Trigger a Dip Back to $75K
Anjali Belgaumkar12 Nov 20242 min read
Bitcoin’s price has seen volatility and rapid gains, especially following notable political events. For instance, the night Donald Trump secured his victory in the 2024 election, Bitcoin surged to an all-time high of $75,000. Since then, it has continued to climb, reaching a peak of $88,000—marking a massive rally in the cryptocurrency market.
A Contrarian Play or the Start of a New Bull Market?
Despite the initial speculation that Bitcoin’s price spike following Trump’s victory might represent a “buy the rumor, sell the news” scenario, the market has defied expectations. Rather than selling off, Bitcoin has continued its upward momentum. At the time of writing, Bitcoin’s price stands at $88,800, signaling that the market may be pricing in further gains, rather than a pullback.
This situation is indicative of Bitcoin’s continued status as a high-risk asset, moving in tandem with the broader stock market. According to Gareth Soloway, Chief Market Strategist of Verified Investing.com, Bitcoin is likely to continue trading alongside risk assets, including stocks. In an interview with David Lin, he said that as long as the stock market remains strong, Bitcoin is likely to see upward pressure as well.
Technical Analysis: Bitcoin’s Trajectory
Looking at Bitcoin’s price chart, we can see a consistent upward trend since the summer of 2023. While there has been some consolidation, Bitcoin is now trading within a bullish channel. He said that if Bitcoin maintains this pattern, the cryptocurrency could continue its rise—potentially reaching $100,000 in the coming months.
Soloway points out that there may be pullbacks along the way, particularly around key levels of resistance. For example, $86,000 seems to be an important level where profit-taking could occur. If Bitcoin hits this price, it may face a brief correction back toward the $74,000 range before continuing its upward trajectory.
What to Expect in the Coming Months
Looking at Bitcoin’s current chart, it’s clear that the cryptocurrency is in a phase of bullish consolidation. This typically indicates that after a period of sideways movement, Bitcoin could make another strong upward move. The next few months will likely be crucial in determining whether Bitcoin can push past $100,000 or face a retracement.
In terms of downside risk, the first major support level for Bitcoin is around the $74,000 mark. If Bitcoin fails to hold this level, it could face further declines to the $58,000 range, where the next significant support lies.
