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bitcoin (btc) has been on the rise recently, hitting multiple all-time highs (ATHs) since Donald Trump emerged victorious in the 2024 US presidential election. Although the leading cryptocurrency has seen a slight pullback in the last 24 hours , recovering to a previous price level could spell trouble for the bears.
bitcoin bears could be in trouble
According <a target="_blank" href="https://x.com/ali_charts/status/1857245026264187201/photo/1″ target=”_blank” rel=”nofollow”>analysis shared by crypto analyst Ali Martinez on x, over $800 million is at risk of liquidation if the flagship digital asset regains the $93,000 price level. Notably, the current ATH of btc stands at $93,477.
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At the time of writing, btc is trading at $89,480, down 1.9% in the last 24 hours. On the 4-hour chart, btc's next prominent support level appears to be around $86,000.
The digital asset has already tested this support level three times, and a further drop in this price could see btc fall towards $81,600, its next major support. If btc fails to hold above $81,600, a drop to $79,700 may follow.
While a lower btc price would favor the bears, a recovery of the $93,000 level could seriously hurt them. Such a move would put more than $800 million in liquidations at risk, potentially forcing bearish traders to capitulate.
Data from Coinglass shows that contracts worth more than $508 million were settled in the last 24 hours. Of those, $355 million were long, while $153 million were short.
A recent analysis by prominent crypto analyst @CryptoKaleo <a target="_blank" href="https://x.com/CryptoKaleo/status/1856780231899844977″ target=”_blank” rel=”nofollow”>suggests that Martínez's warning about bears may be justified. According to @CryptoKaleo, btc could retreat as low as $86,000 before embarking on another rally to set new ATHs, possibly beyond $100,000. The analyst stated:
Just a little drop and a little more reach and then send it to $100K+. Honestly, I think this is the best scenario for the alts if we somehow get it. I would look for outperformance as btc accumulates around $90,000.
What's behind the btc 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 growing Institutional adoption of the digital asset.
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However, Trump's victory in the 2024 US presidential election, an outcome seen as pro-crypto, served as a major catalyst for btc's rise. Since Trump's victory on November 5, btc has risen from around $69,000 to a high of $93,000, posting gains of more than 30% in just 10 days.
Despite this impressive price rally, experts suggest that btc may have more room to grow. For example, a recent research report predict 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 increase boost 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 in the last 24 hours. Meanwhile, bitcoin dominance is at 60.97%, underscoring btc's continued strength in the market.
Featured image from Unsplash, Charts from x, Coinglass and Tradingview.com
