Bitcoin Price Target Set at $85,360 If It Remains Above $71,480
Bitcoin, the largest digital asset, recorded a 10.58% increase over the past week, resuming an upward trend that began in early October. This rise coincided with Donald Trump being elected US President and a 25 basis points rate cut by the US Federal Reserve.
Bitcoin Must Stay Above $71,480
Analyst Ali Martinez predicts Bitcoin could peak at $85,360 if it remains above $71,480, based on MVRV Deviation Pricing Bands data. Previously, he forecasted a retracement to around $71,500 after reaching $78,000. With Bitcoin currently near $77,000, maintaining prices above $71,480 is crucial to avoid a potential drop to $66,000. Conversely, if market conditions remain bullish, Bitcoin may exceed $78,000 and reach the target of $85,360.
Factors contributing to this optimism include Trump's election signaling a crypto-friendly government approach and significant inflows into Bitcoin Spot ETFs. Investors should remain cautious due to the high volatility inherent in the crypto market.
BTC Social Narrative Backs Potential Retrace
Data from analytics firm Santiment indicates that Bitcoin's rise above $77,000 has shifted the social narrative toward expecting a rise to $80,000. Historically, heightened enthusiasm for this price level has led to price retracements. Thus, managing expectations is important to sustain the current rally.
As of now, Bitcoin trades at $76,395, reflecting a 0.49% gain in the last 24 hours.
