Bitcoin ‘Playing as Predicted’ as Analysts Eye $85K After $71K Retracement

Bitcoin soared to unprecedented levels on Wednesday, fueled by former President Donald Trump’s electoral victory over Vice President Kamala Harris. Specifically, the firstborn crypto hit an all-time above $76,000 yesterday.

This surge triggered widespread liquidations among over-leveraged short traders, totaling over $500 million. Notably, the price later steadied at $74,812 after hitting another all-time high of $76,493.

Amid ongoing price action with brief pullbacks, analyst Ali Martinez has emphasized that Bitcoin’s price trajectory remains on course. Martinez previously forecasted that if Bitcoin stayed above $65,000, it could ascend to $72,000, briefly retreat to $69,000, and ultimately rally toward $78,000. 

Remarkably, his analysis played out as anticipated, as Bitcoin retraced below $67,000 before rebounding to a new high above $76,000.

His latest projections suggest Bitcoin may soon hit $78,000, pull back to $71,500, and then surge to $85,000. At its current value, Bitcoin would need to gain 4.26%—or $3,188—to reach the $78,000 target.

This is playing as predicted. I think #Bitcoin hits $78,000, retraces to $71,500 and then rebounds to $85,000! https://t.co/8xKUNGZYI8

— Ali (@ali_charts) November 6, 2024

Analysts Foresee 40% Upside

Meanwhile, CryptoQuant founder Ki Young Ju highlighted a potential 40% upside. Ju noted that Bitcoin’s market typically follows cyclical patterns, where losses during bear markets often transfer wealth from new to seasoned investors. He underscored that the current cycle aligns with an easing phase, signaling reduced market stress.

Ju also highlighted that the explosive gains observed during Bitcoin’s 368% rally from $16,000 are unlikely to reoccur. He suggested a more conservative outlook for this cycle, advising holders to consider gradual profit-taking.

Indicators Point to Potential Pullback

Amid these bullish projections for Bitcoin, momentum indicators reflect a potential cooling off for Bitcoin following its recent highs. The price has broken through the upper Bollinger Band, signaling overbought conditions.

Red candlestick formations have also emerged, suggesting increased selling pressure and potential profit-taking.

The Relative Strength Index (RSI) further supports these signs. The RSI, previously in the overbought zone above 70, has now retreated to 67.34. This decline indicates a loss of bullish momentum and hints at a possible price correction or consolidation phase.