Bitcoin, the world’s largest digital asset, recorded significant market gains in the past week to resume an uptrend that began in early October. Data from CoinMarketCap shows that Bitcoin rose by 10.58% in the past week as pro-crypto candidate Donald Trump emerged as US President-elect on November 5, followed by a 25 bps rate cut by the US Federal Reserve.
With the crypto market leader recording new all-time highs each day, analyst Ali Martinez has dropped a new price target that hinges on a certain condition.
Bitcoin Must Stay Above $71,480 – Here’s Why
Amidst the current Bitcoin price rally, Ali Martinez predicts the digital asset could reach a local price peak of $85,360. However, this price action can only occur if BTC’s value does not decline below $71,480 based on data from the MVRV Deviation Pricing Bands, a trading tool used to identify extreme bullish and bearish market conditions based on the Market Value to Realized Value (MVRV).
Martinez’s latest insight on Bitcoin’s trajectory follows a previous prediction in which the analyst forecasted the premier cryptocurrency to retrace to around $71,500 after hitting the $78,000 price mark. With Bitcoin within range of this price target following its recent tourney across $77,000, it is imperative that the market bulls prevent any potential retracement below $71,480, which may result in a further decline to $66,000 at which lies its next major resistance.
Alternatively, Bitcoin is also well poised to push beyond $78,000, reaching Martinez’s target of $85,360 without experiencing any projected price pullback as market sentiments remain highly bullish due to multiple factors.
Aside from Donald Trump’s resounding electoral victory which signals an incoming crypto-friendly approach by the US Government, high inflows into the Bitcoin Spot ETFs over the past weeks have also boosted investors’ confidence in Bitcoin’s continuous profitability. Nevertheless, all investors are admonished to remain vigilant as the crypto market is subject to high levels of volatility and sudden price movements.
BTC Social Narrative Backs Potential Retrace
In other news, data from analytics firm Santiment shows that Bitcoin’s rise above $77,000 has induced a change in the social narrative as the general crypto community is anticipating a continuous rise to $80,000.
According to Santiment, whenever crypto enthusiasts have been overly eager about $80,000 in the past month, Bitcoin has experienced a price retrace. Therefore, there is a need to reduce growing notions around FOMO in order to allow Bitcoin to maintain its current price rally.
At the time of writing, Bitcoin trades at $76,395 reflecting a gain of 0.49% in the past 24 hours.
Source: NewsBTC