Bitcoin Price Hits ATH at $80K— Will The Party Go On Or Is Correction Nigh?
NOIDA (CoinChapter.com) — Bitcoin price has soared to new all-time highs, breaching $80,000 amid heightened global market interest and speculation. Analysts attribute the surge to various factors, with the recent U.S. presidential election and Donald Trump’s victory among the top drivers.
The Trump administration’s newfound endorsement of cryptocurrency, a stark shift from its initial skepticism, has amplified investor confidence in the sector. Trump’s pro-crypto stance and the uncertainty surrounding traditional financial markets have likely fueled Bitcoin’s rapid ascent as investors flock to decentralized assets to hedge against economic instability.
Moreover, the upcoming fiscal policies under Trump’s leadership hint at possible leniency toward digital assets, further enhancing Bitcoin’s appeal. Painting a new ATH places Bitcoin in the “price discovery” phase, characterized by intense volatility and unpredictable price movements as BTC tests uncharted territory.
With a complex mix of geopolitical factors, Bitcoin’s future trajectory could shape the broader crypto market for months.
Navigating The Future: Potential Consolidation Ahead?
Bitcoin’s record-breaking run has left traders and investors debating the sustainability of its rally. While BTC’s recent spike seems impressive, on-chain data and trading metrics suggest that this bullish wave may soon encounter headwinds.
Derivatives data reveals a 40.69% increase in trading volume, reaching $82.08 billion, and a 4.07% uptick in open interest, signaling heightened market activity and speculative buying interest. This often indicates strong capital inflows but also sets the stage for potential volatility if sentiment shifts.
However, this rapid ascent has also triggered the “Extreme Greed” level on the Bitcoin Fear and Greed Index, now at 78. This level historically precedes price pullbacks as overbought conditions become more likely.
Bitcoin net transfer volume to and from exchanges. Source: Glassnode
On-chain data reveals that long-term holders transfer Bitcoin to exchanges, a move often interpreted as a precursor to profit-taking. The behavior suggests that some investors may be preparing to capitalize on recent gains, potentially increasing selling pressure.
Traders should remain cautious. While the current uptrend reflects strong demand, high leverage and elevated open interest could introduce volatility, especially if large players initiate liquidation events.
An analyst remained skeptic of a BTC price pull back to $50,000.
Moreover, independent crypto analyst CredibleCrypto warned that Bitcoin could see a significant correction, potentially dropping to $50,000.
The analyst’s predicted scenario suggests that BTC’s current rally may be nearing exhaustion, with increased profit-taking and shifting sentiment likely to trigger a substantial downturn soon.
BTC Bulls Trying To Push Past $80k
Meanwhile, the BTC USD pair dropped below $80,000 after the token reached its new all-time high near $80,120 on Nov. 10. However, bulls seem adamant about pushing the token above the $80,000 price mark.
If Bitcoin price continues its rally, pushing past its recent ATH would bring Bitcoin price close to the 0.382 Fib resistance level near $81,870. Moreover, breaking and consolidating past the immediate resistance level would help BTC price rise to the resistance near $85,550.
BTC USD daily price chart with RSI. Source: Tradingview
The OG crypto token would likely suffer a correction before it breaks past the resistance levels. Supporting this prediction is the overbought RSI level, currently sitting at 76.57 on the daily charts.
Overbought RSI levels often precede a price reversal for an asset, which is why traders often start selling once the momentum oscillator exceeds 70, the overbought threshold.
If a sell-off occurs, the BTC price can expect support near the $75,470 mark. However, failure of the immediate support level could force Bitcoin’s price to test its 20-day EMA (red) support level near $71,000 before recovering.
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