Bitcoin Price News and Predictions
Written by: Rania Gule, Senior Market Analyst at XS.com
Bitcoin (BTC/USD) has risen once again, surpassing the $97,000 level recently, but it started today’s Monday session at $96,600, benefiting from the upward momentum following the elections, which has boosted hopes of reaching the $100,000 level. This recovery is supported by increased investor sentiment and active trading by Micro Strategy, which has expanded its Bitcoin holdings by adding 55,000 new coins for $5.4 billion. From my perspective, this trend represents a strategic investment reflecting the confidence that large companies have in digital assets. Additionally, Bitcoin’s stability above key support levels at $96,500 and its success in surpassing resistance at $96,000 indicate the start of a new upward wave, supported by positive technical data.
On the fundamental side, the cryptocurrency market has been experiencing significant volatility lately, with major coins like Bitcoin, Ethereum, and Ripple continuing to rise and fall dramatically. In my view, this reflects the global economic disruptions and geopolitical trends affecting investment decisions in this market. Despite the recovery of some coins like Bitcoin after its decline last week, many technical signals suggest that the market is facing a decisive moment, which may bring further volatility.
Bitcoin began the week with relative stability around $96,000 after its decline last week, where it dropped to about $90,000 before recovering to around $97,000. This movement, in my opinion, indicates the hybrid nature of the market, lacking sustainable momentum. Bitcoin seems to be struggling to break past its all-time high of $99,588. While the Relative Strength Index (RSI) shows upward momentum, the descending MACD crossover raises concerns about Bitcoin’s future outlook. If Bitcoin fails to maintain its upward momentum, we could see a correction extending to several support levels starting from $90,000.
On the other hand, Ethereum continues its positive performance, breaking the weekly resistance level at $3,454, which could support potential gains to $4,000. However, despite the positive indicators, Ethereum faces an important support level at $3,454, and if it fails to hold, it may retreat to lower levels. In my view, this rise in Ethereum’s price reflects the increasing market trend towards cryptocurrencies with greater growth potential amid Bitcoin’s slowdown. Ethereum may benefit from this upward momentum if investor support continues.
Ripple has seen its largest surge in three years, with its price jumping over 60% in one week, reaching $2.35. It continued rising today to $2.41. Despite this strong performance, the RSI on the daily chart shows overbought conditions, indicating the possibility of a corrective pullback. If Ripple fails to sustain its upward momentum, it may fall back to the support level at $1.96.
In my view, the market overall shows some weakness, as the cryptocurrency market lost about 4.6% of its value in one day, dropping to $3.2 trillion. This decline suggests that cryptocurrencies may face challenges due to the unstable geopolitical environment and fears of widespread market sell-offs. Reports have shown that the Fear and Greed Index for cryptocurrencies has dropped to 79, indicating that investors are becoming more cautious, although this still represents a high level of greed in the market.
I believe the current geopolitical factors play a pivotal role in these fluctuations, influencing cryptocurrency trading and increasing concerns about the effects of these crises on global markets. Additionally, the tariff threats launched by former U.S. President Donald Trump against stock indices could increase pressure on markets, including the cryptocurrency market.
Despite the large influx of investments into Bitcoin in recent weeks, according to a report from CoinShares, which indicated that investments in crypto funds have reached their highest levels ever, Bitcoin’s relative dominance has started to decline. This reflects a gradual shift from Bitcoin to other cryptocurrencies, creating a more competitive environment in the market.
While Bitcoin may experience a slight correction shortly, Ripple and Ethereum seem more poised for further gains due to the ongoing momentum. However, warnings about potential corrections remain, especially as technical indicators like the RSI show overbought levels, meaning traders should remain cautious.
Given the current situation, I expect the cryptocurrency market to continue its volatility, with attention focusing on geopolitical developments and upcoming economic reports that could significantly influence trends. Ultimately, alternative cryptocurrencies like Ethereum and Ripple remain more responsive to market changes, while Bitcoin faces challenges with sustained momentum near its technical resistance.
