This article is also available in Spanish.
After surpassing its $100,000 milestone, bitcoin (btc) recorded its biggest pullback in the last month before recovering. Amid the performance of the flagship cryptocurrency, some analysts have suggested levels to watch and next stops for btc's rally.
Related reading
bitcoin rally will continue above $100,000
On Thursday, bitcoin hit its latest all-time high (ATH) of $103,600 in a daily jump of 8%. The largest cryptocurrency by market capitalization broke a month-long bullish pennant and surpassed the $100,000 barrier for the first time in history.
After the impressive rise, btc retreated to the $98,000 mark before briefly falling to the $90,000 support zone. This 13% correction marks the biggest drop for the flagship cryptocurrency since the post-election rally began a month ago and triggered around $1 billion in liquidations, the largest since August.
However, bitcoin quickly regained the price range of $97,000 to $98,000, followed by a retest of previous ATH levels around $99,000 on Friday morning. Renowned crypto analyst Ali Martinez noted that btc's rally apparently depends on a key support level.
Martinez <a target="_blank" href="https://x.com/ali_charts/status/1864979331123970321″ target=”_blank” rel=”nofollow”>revealed The most important support zone for bitcoin was the $96,870 mark, where over 1.45 million addresses purchased 1.42 million btc. The analyst explained: “As long as this demand zone holds, there is a good chance that btc will continue to rise.”
Furthermore, he highlighted that bitcoin's local cap has not yet arrived, as it “is usually reached around the standard deviation of the short-term holder's cost basis +1.” According to the analyst chart, this level was $112,926 at the time of the report, suggesting that btc could jump another 13% before seeing the first major pullback.
Will btc repeat its 2017 move?
Jelle crypto Analyst <a target="_blank" href="https://x.com/CryptoJelleNL/status/1864941469858926963″ target=”_blank” rel=”nofollow”>pointed He notes that bitcoin is still “closely tracking the Q4 2023 fractal” despite the drop. He suggested that now that the flagship cryptocurrency has “eliminated liquidity on both sides,” it would begin to retreat towards the $100,000 milestone.
Jelle suggested that btc would extend until Christmas, when he predicts that a “true breakout” will occur if it continues to follow in last year's footsteps. Furthermore, he noted that yesterday's $100,000 candle looks similar to btc's candle when it first broke the $10,000 mark.
In November 2017, bitcoin rose to $10,000 for the first time, reaching the $11,000 range before plummeting to $8,500. The next day, the largest cryptocurrency saw its price recover from the correction and retest the $10,000 barrier, eventually turning it into support on the third day.
After that, bitcoin rose around 90% in the next few weeks to the 2017 ATH of $19,000. Based on this, the analyst suggests that the recent price volatility is “totally normal” and will increase soon if history repeats itself.
Related reading
After recovery, btc successfully <a target="_blank" href="https://x.com/CryptoJelleNL/status/1864927280578842718″ target=”_blank” rel=”nofollow”>reevaluated the bullish pennant, setting the stage for a six-figure price “once and for all,” Jelle stated, with liftoff targeting the $130,000 level.
At the time of writing, the flagship cryptocurrency is trading at $101,050, up 4.7% on the weekly period.
Featured image from Unsplash.com, chart from TradingView.com
