16 November 2024
Bitcoin (BTC) has been on a tear recently, hitting multiple all-time highs (ATH) levels since Donald Trump emerged victorious in the 2024 US presidential elections. Although the top cryptocurrency has witnessed a slight pullback in the past 24 hours, rebounding to an earlier price level could spell trouble for the bears.
Bitcoin Bears Could Be Under Trouble
According to analysis shared by crypto analyst Ali Martinez on X, more than $800 million is at risk of liquidation if the flagship digital asset reclaims the $93,000 price level. Notably, BTC’s current ATH stands at $93,477.
At the time of writing, BTC is trading at $89,480, down 1.9% in the past 24 hours. On the 4-hour chart, BTC’s next prominent support level appears to be around the $86,000.
The digital asset has already tested this support level three times, and a further dip to this price could send BTC tumbling toward $81,600, its next major support. If BTC fails to hold above $81,600, a decline to $79,700 may follow.
While a lower BTC price would favor the bears, a reclaim of the $93,000 level could severely hurt them. Such a move would risk over $800 million in liquidations, potentially forcing bearish traders to capitulate.
Data from Coinglass shows that contracts worth more than $508 million were liquidated in the past 24 hours. Of this, $355 million were long, while $153 million were short.
A recent analysis by prominent crypto analyst @CryptoKaleo suggests that Martinez’s warning for bears may be justified. According to @CryptoKaleo, BTC could retrace to $86,000 before embarking on another rally to set new ATHs – possibly beyond $100,000. The analyst stated:
Just a little dip and a bit more ranging then send to $100K+. Honestly think this is the best case scenario for alts if we somehow get it. Would look for outperformance while BTC is accumulating around $90K.
What’s Behind BTC’s Run?
Multiple factors have contributed to BTC’s historic price action, including the halving earlier this year, the approval of Bitcoin exchange-traded funds (ETFs), and rising institutional adoption of the digital asset.
However, Trump’s win in the 2024 US presidential elections – a result seen as pro-crypto – served as a major catalyst for BTC’s surge. Since Trump’s victory on November 5, BTC has climbed from around $69,000 to a high of $93,000, recording gains of more than 30% in just 10 days.
Despite this impressive price rally, experts suggest that BTC may have further room to grow. For instance, a recent research report predicts that BTC’s bullish momentum could continue until mid-2025 when it is expected to peak.
Additionally, relatively low profit-taking during this bull run could further propel BTC to new heights. However, bulls should remain cautious of a significant CME gap around the $78,000 level, which could be a magnet for price correction.
At the time of writing, the total cryptocurrency market capitalization stands at $2.904 trillion, reflecting a 3.7% decline over the past 24 hours. Meanwhile, Bitcoin dominance is at 60.97%, underscoring BTC’s continued strength in the market.
