Bitcoin On A Rebound? Here Are Key Levels To Watch
In an exciting development, Bitcoin may finally be undergoing a market rebound according to a recent prediction by crypto analyst Ali Martinez. However, the premier cryptocurrency finds itself in a critical price zone, which holds significant implications for both bullish and bearish market outcomes.
Bitcoin Must Stay Above $93,400 To Retain Bullish Drive
In an X video post on December 28, Martinez stated that Bitcoin may be preparing for a price recovery according to certain market indicators. Firstly, the analyst stated BTC was forming a bullish divergence against its relative strength index, This is a classic bullish signal that indicates weakening downward momentum and a potential price reversal is on the horizon.
Furthermore, there are 14 million worth of potential liquidations at $95,300. Martinez believed that market makers would target this price zone which represents a significant concentration of leveraged trading positions. Market makers often attempt to eliminate these leveraged positions leading to an increased market liquidity and volatility, on which they can capitalize to make trades at favorable prices.
Another market development that supports Bitcoin’s potential rebound is an increase in long traders on the Binance exchange from 53.12% to 64.04%. This indicates that more Binance traders, who Martinez claims have a solid track record, are predicting Bitcoin to soon experience a price rise.
Since Martinez’s video post, Bitcoin has moved above $94,800, which the analyst described as a key resistance level to the projected rebound. Bitcoin is now expected to rise further to $95,600 with a potential to trade as high as $98,373 in the short term.
However, the market expert cautions that Bitcoin is at a crucial juncture, with any drop below the key support level of $93,400 likely to spark a further decline to $84,000 or even $70,000. This would represent a potential 25% drop from its current price.
BTC Price Overview
At press time, Bitcoin trades at $95,173 following a price gain of 0.93% in the last 24 hours. Meanwhile, the asset’s trading volume is down by 53.76% and is now valued at $24.76 billion.
The premier cryptocurrency has experienced a rather bearish end to 2024 but market optimism remains rather high. Analysts have continuously described 20-30% corrections as part of the bull market setting the stage for stronger price rallies. With 2025 fast approaching, a price surge above the $100,000 resistance remains key to inducing another uptrend with lofty projected targets as high as $350,000 in the new year.
