In an exciting development, Bitcoin may finally be experiencing a market rally according to a recent prediction from crypto analyst Ali Martinez. However, the leading cryptocurrency is in a critical price zone, which has major implications for both bullish and bearish market outcomes.
Bitcoin Must Hold Above $93,400 to Maintain Bullish Momentum
In a December 28 X video post, Martinez claimed that Bitcoin may be gearing up for a price recovery based on certain market indicators. Firstly, the analyst claimed that BTC was forming a bullish divergence against its Relative Strength Index. This is a classic bullish signal indicating weakening bearish momentum and a possible price reversal on the horizon.
Additionally, there are potential settlements worth $14 million to $95,300. Martínez 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, resulting in increased market liquidity and volatility, which they can take advantage of to place trades at favorable prices.
Another market development supporting 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 says have a strong track record, are predicting that Bitcoin will soon see a price increase.
Since the release of Martinez’s video, Bitcoin has moved above $94,800, which the analyst described as a key resistance level for the projected rebound. Bitcoin is now expected to rise further to $95,600, with a trading potential of up to $98,373 in the near term.
However, the market expert warns that Bitcoin is at a crucial juncture, and any drop below the key support level of $93,400 will likely trigger a further drop 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 is trading at $95,173 following a 0.93% price gain in the last 24 hours. Meanwhile, the asset’s trading volume has decreased by 53.76% and is now valued at $24.76 billion.
The leading cryptocurrency has seen a fairly bearish finish through 2024, but market optimism remains quite high. Analysts have continually described 20-30% corrections as part of the bull market setting the stage for stronger price rallies. With the year 2025 quickly approaching, a price surge above the $100,000 resistance remains key to inducing another uptrend with lofty projected targets. up to $350,000 in the new year.
Fountain: NewsBTC.com
