Drawing on his expertise as a seasoned analyst, Michaël van de Poppe has forecasted a 10% Bitcoin retracement ahead of the release of the Consumer Price Index (CPI) data. The anticipated dip targets a range of $75,669–$81,193.
Bitcoin’s performance this week has been nothing short of extraordinary, continuing its upward trajectory to trade around $86,000. This significant upswing was triggered last Tuesday when Bitcoin broke through resistance at $68,000, coinciding with the U.S. election results. As President-elect Donald Trump prepared to take office, Bitcoin’s price escalated swiftly.
This rally gained momentum during the early hours of the Asian trading session, pushing Bitcoin to an intraday high of $89,964. This peak, however, triggered a bearish response with sellers stepping in to prevent the cryptocurrency from sustaining levels above this milestone. As of reporting, Bitcoin had retreated slightly to $86,386.10. Despite the minor setback, the cryptocurrency still boasts a 5.30% gain in the last 24 hours and a remarkable 25.69% upswing over the past week.
Van de Poppe, founder of MNConsultancy, sees the market gathering steam but predicts a dip leading up to the CPI data release on November 13. He has identified a “sweet spot” for entries, suggesting a 10% correction toward the CME gap before the continuation of the rally. His target range for this retracement sits between the 38.2% Fibonacci retracement level at $75,669.64 and the 61.8% level at $81,193.13.
He also pointed out $66,729 as an “ideal area to hold” and $64,130.63 as a potential liquidity outpost, indicating regions where market participants might seek to fulfill orders before prices ascend.
Technical indicators also suggest that Bitcoin may be venturing into overbought territory. The cryptocurrency trades above the upper Bollinger Band, a sign that typically indicates an asset may be overbought or due for a consolidation or correction phase. The 14-day Relative Strength Index (RSI) stands at 75.20, going beyond the standard overbought threshold of 70. This implies that Bitcoin could face downward pressure or a correction in the short term.
Technical analyst Ali Martinez, on the other hand, has urged investors to tread with caution amid rising retail interest in Bitcoin. He pointed out that while increased retail interest often signifies more capital inflow into the market, historical data shows that a surge in Bitcoin search activity often coincides with price corrections. This pattern suggests that Bitcoin’s price tends to decline when its search activity surges, indicating the need for vigilance among investors.