Bitcoin, the world's leading cryptocurrency, has surged more than 100% since the start of 2024, with most of those gains coming in the past few months, bringing its market cap to $1.83 trillion. But what's next for Bitcoin? Analysts have laid out a big game plan, suggesting Bitcoin will either surge to $118,000 or soon face a sharp 20%-30% correction.
Why is Bitcoin rising?
Bitcoin (BTC) recently surged to an all-time high (ATH) of $93,207 before retreating slightly and stabilizing around $87,000. Meanwhile, the current surge can be attributed to two main factors. First, the recent U.S. presidential election results, which saw the Republican candidate Donald Trump emerge victorious, have brought optimism to the market.
Additionally, the Federal Reserve’s decision to cut interest rates by 25 basis points to a range of 4.50% to 4.75% has created a more favorable environment for alternative assets such as Bitcoin, attracting more investors to the market.
Bitcoin’s Game Plan
Analysts have outlined two possible scenarios for Bitcoin’s future price action.
Plan A suggests that Bitcoin could continue to rise by another 10% to 20% to reach between $104,000 and $118,000. However, this rise could be followed by a 20% to 30% pullback, which would return Bitcoin to more stable levels.
Plan B believes that Bitcoin may stabilize around current levels and rise slightly to recent highs before potentially facing a 20%-30% correction. If such a correction occurs, the price of BTC could fall to around $69,000-79,000, analysts said.
That may be worrying for some traders, in part because Bitcoin’s daily relative strength index (RSI) reading is in overbought territory. When the RSI exceeds 70, it indicates that strong buying momentum may soon run out of steam.
