Bitcoin, the world’s leading cryptocurrency, has risen more than 100% since the start of 2024, with most of these gains coming in recent months, bringing its market capitalization to $1.83 trillion. But what’s next for Bitcoin? Analysts have laid out a major game plan, suggesting that Bitcoin could either soar to $118,000 or face a sharp correction of 20%-30% soon.
Why Bitcoin is Rising?
Bitcoin (BTC) recently rose to an all-time high (ATH) of $93,207 before experiencing a slight pullback and stabilizing around $87,000. Meanwhile, the current increase can be attributed to two major factors. First, the recent outcome of the US presidential election, which saw Republican candidate Donald Trump emerge victorious, has injected optimism into the market.
Furthermore, the Federal Reserve’s decision to cut interest rates by 25 basis points to a range of 4.50% to 4.75% has created a more supportive environment for alternative assets such as Bitcoin, attracting even more investors to the market.
Game plan for Bitcoin
Analysts have outlined two possible scenarios for Bitcoin’s future price action.
Plan A suggests that Bitcoin can continue its rally and rise another 10% to 20% to reach somewhere between $104,000 and $118,000. However, this increase would likely be followed by a 20% to 30% correction, which would return Bitcoin to a more stable level.
Plan B suggests that Bitcoin could stabilize around its current levels, with a smaller rally to recent highs before potentially facing a 20%-30% correction. Analysts say that if this correction occurs, the price of BTC could fall to around $69,000-$79,000.
This could worry some traders, partly due to Bitcoin’s overbought daily relative strength index (RSI). When the RSI crosses above 70, it indicates strong buying momentum that will soon run out.