Bitcoin continues to see significant price jumps after rising 19.28% over the last seven days. The top cryptocurrency is recreating another bullish fourth quarter, particularly boosted by a number of factors as it gradually approaches its $100,000 price target. However, cryptocurrency analyst Ali Martinez revealed an vital condition for market bulls to maintain their current momentum.
Why $91,900 is crucial for Bitcoin
Donald Trump’s election victory combined with the Federal Reserve’s recent interest rate cuts have seen Bitcoin hit multiple record highs over the past two weeks. The cryptocurrency market leader hit a recent high of $93,434 on Thursday and has since retreated 2.25% to remain consolidating above $91,000.
Commenting on the future price movement of Bitcoin, Ali Martinez common that TD Sequential, a trading indicator that identifies trend exhaustions and market reversals, recently flashed a sell signal indicating that BTC may require a significant price correction.
However, the analyst explains that the leading cryptocurrency can avoid such a downturn if market bulls ensure a daily close above $91,900. Martinez says maintaining this price level would allow Bitcoin to maintain its current trajectory and potentially climb to $100,680.
Will Bitcoin fall or not?
Martinez’s predictions contradict broader beliefs that the leading cryptocurrency is headed for another correction after a sustained price rally since early October.
In separate post on Xthe analyst notes that Bitcoin’s long to tiny ratio is currently 0.79, with 55.94% of traders opening tiny positions in anticipation of a price drop. Bitcoin’s relative strength indicator also remains above 70, signaling that it is in an overbought zone and threatening to reverse prices. However, the asset price is also well above the 20-SMA, indicating the potential for the trend to continue.
Moreover, Trump’s impending return to the White House, which is expected to usher in recent pro-crypto appointments at agencies such as the SEC and CFTC, also continues to excite investors, who will now expect a less hostile regulatory regime. This factor, combined with the continued impressive performance of spot Bitcoin ETFs, which have now accumulated $6.18 billion in total inflows in Q4 2024. Therefore, the leading cryptocurrency may remain resilient nonetheless, reaching another all-time high in the blink of an eye.
At the time of writing, Bitcoin is trading at $91,166, representing an escalate of 2.10% in the last day. Meanwhile, the asset’s trading volume dropped by 18.88% and is valued at $68.54 billion.
Featured image from Medium, chart from Tradingview
