The price of Bitcoin (BTC) rose 7.99% last week to reach a novel all-time high of $99,655 on November 22. The maiden cryptocurrency then saw a slight pullback over the last 48 hours, falling to around $98,200. However, given the impressive rise in BTC prices over the past seven weeks, there continues to be speculation of a major price correction.

Why Bitcoin Needs to Surpass $100,535 – Analyst

In Post X from November 23Ali Martinez shared an intriguing prediction about Bitcoin’s potential price movement. According to popular cryptocurrency analyst, TD Sequential, used to detect potential price reversals, has indicated a sell signal on Bitcoin’s 12-hour chart, suggesting an upcoming price decline.

Martinez’s latest forecast is in line with popular expectations for a correction in Bitcoin’s price as the asset’s price surges 61.76% from $60,500 in early October. This concept arises from various trading indicators and indicators. For example, the Bitcoin Relative Strength Index has consistently remained in the overbought zone, suggesting the potential for a sudden price drop.

In addition, another Maartunn analyst reports that the BTC Fear and Greed Index is at a 4.5-year high of 94. Generally speaking, any Fear and Greed Index above 75 indicates extreme greed among investors, which is overwhelmingly bullish, but also creates room for overvaluation ahead of significant corrections prices.

More disturbing, Martun also notices that the level of unrealized profits of Bitcoin traders has reached 57% and is gradually approaching a local peak of 69% in March 2024, increasing the potential for a price correction.

According to Ali Martinez, if BTC undergoes a long-awaited correction, as indicated by TD Sequential and other factors, the cryptocurrency market leader could fall to $91,583. Amid mighty selling pressure, Bitcoin could further decline to $85,610, indicating a potential decline of 12.64% from the current market price.

However, Martinez also postulates that BTC could invalidate the sell signal from TD Sequential and avoid a major correction by closing above $100,535 on the 12-hour daily chart. Given Bitcoin’s recent price movements and events such as the excitement surrounding Donald Trump’s election victory and increased ETF inflows, a continuation of the upward trend is definitely very likely.

BTC price overview

According to CoinMarketCap data, BTC is trading at $98,213, reflecting a decline of 0.44% over the past day. In both cases, the daily trading volume of this asset is valued at $44.02 billion, a decline of 43.14%. However, Bitcoin remains largely profitable for long-term holders, with a gain of 45.06% over the last 30 days. With a market capitalization of $1.95 trillion, the premier cryptocurrency remains the world’s largest digital asset.