Bitcoin Soars And Reaches $89,000! Analysis Of November 12, 2024

After reaching its ATH, Bitcoin has sparked growing interest, pushing its price towards $89,000. Let’s now examine the evolution prospects for BTC.

Situation of Bitcoin price (BTC)

After a slight drop at the end of October, Bitcoin bounced back strongly, even before the official victory of Donald Trump in the U.S. presidential elections. This reaction can be explained by the pro-crypto stance of the new American president. Indeed, Donald Trump highlighted his promises to the crypto market, particularly regarding Bitcoin, naturally creating a climate of optimism. Since the beginning of November, the mother cryptocurrency has recorded a performance of over 25%. It is interesting to note that this new expansion started at the monthly pivot point, located on a notable value area. During this rise, a consolidation period around $76,000 was observed, corresponding to the first resistance of the monthly pivot points.

At the time of writing, the Bitcoin price has just tested $89,500. Thus, the rise of Bitcoin continues in good shape. Unsurprisingly, the crypto is in a bullish trend in the short, medium, and long term. However, it should be noted that the crypto is gradually moving away from its 50 and 200-day moving averages. This indicates a strong bullish momentum for Bitcoin, noticeable in both its oscillators and its price. Although this momentum is positive, it is important to remember that a too strong movement could precede a significant correction.

The current technical analysis was done in collaboration with Elie FT, an investor and passionate trader in the cryptocurrency market. Today a trainer at Family Trading, a community of thousands of independent traders active since 2017. You will find Live sessions, educational content, and support around financial markets in a professional and warm environment.

Focus on derivatives (BTCUSDT)

The open interest of perpetual BTCUSDT contracts as well as its CVD have evolved in line with the price of their underlying asset (Bitcoin), showing a growing interest from speculators, mostly buying. These observations can be confirmed by the funding rate, which remains positive. Regarding liquidations, there was a peak of liquidations of short positions on November 6, a level that hadn’t been observed since 2021. This clearly demonstrates a capitulation of sellers in the face of the rise in crypto prices.

The liquidation heat map shows that BTC/USDT has sparked buyer interest after crossing each notable liquidation zone. The most recent ones were those at $70,000 and $73,000. Currently, the notable liquidation zone is around $75,000. Below, we can also note the zone of $70,000, and further down, the price range between $67,000 and $64,000. If the price approaches these levels, it could trigger a large number of orders, thereby increasing the risk of volatility for the cryptocurrency. These zones are therefore a crucial point of interest for investors.

Forecast for Bitcoin price (BTC)

• If the Bitcoin price remains above $82,000, a break of $89,000 could be considered. In case of continued bullish movement, the thresholds of $90,000 and $91,000 could be reached, potentially opening the way to $95,000, representing an increase of approximately 7%.

It should be noted that with the reaching of the highest historical level, it becomes more difficult to identify resistance levels in the medium and long term.

• If Bitcoin fails to stay above $82,000, a pullback to $80,000 is possible. In case of continued decline, the next support could be around $75,000, or even $74,000. Even lower, the $70,000 zone constitutes a notable support, whose reaching would imply a drop of approximately 20%.

Conclusion

Bitcoin continues its bullish momentum, driven by an increased climate of optimism. However, the strength of this movement could signal a future correction, highlighting the importance of remaining vigilant in the face of a rapid rise. Thus, it will be essential to closely monitor the price reaction at key levels to validate or adjust current forecasts. Finally, let’s remember that these analyses are based solely on technical criteria, and the price of cryptocurrencies can evolve rapidly depending on other more fundamental factors.