Key information
- The price of bitcoin reached an all-time high of $81,000 on November 10.
- Opinion within the crypto community is divided on the sustainability of this rally, with some analysts suggesting a correction could be imminent and others predicting that if the bullish momentum persists, bitcoin could reach $100,000.
- The rapid price increase has pushed the Bitcoin Fear and Greed Index into the “Extreme Greed” zone at 78, historically signaling potential pullbacks due to overbought conditions.
On November 10, the price of bitcoin reached an all-time high of $81,000. This milestone signifies an important phase for the cryptocurrency market, which is entering what many experts call “price discovery” – a phase where future price trends remain largely unpredictable. However, opinions within the cryptocurrency community are divided on the sustainability of this recovery.
Bitcoin’s surge has sparked both excitement and apprehension among investors. According to Ki Young Ju, CEO of CryptoQuant, all Bitcoin wallet addresses are currently showing profits, and some analysts suggest that a correction could be imminent, with major investors likely to take profits. Conversely, optimistic predictions indicate that if the bullish momentum persists, bitcoin could reach $100,000.
Market Sentiment and Technical Analysis
The rapid price increase has pushed the Bitcoin Fear and Greed Index into the “Extreme Greed” zone at 78, historically signaling potential pullbacks due to overbought conditions. Experts warn that intense bullish sentiment could attract selling pressure, particularly if investors look to capitalize on substantial gains.
Trading activity in bitcoin derivatives reflects this increased market interest. The data reveals a 33.31 percent increase in trading volume, which now exceeds $78 billion, and a 4.16 percent increase in open interest, which stands at $48.78 billion. . While some see these numbers as supporting the current uptrend, others caution that high volume and open interest can precede volatility, with large players exploiting market momentum for strategic maneuvers.
Market indicators and future trajectory
Technical analysts are closely watching key price levels as bitcoin surges above $81,000. Immediate support is expected between $75,000 and $76,000, a former resistance zone before bitcoin’s recent breakout. Further support could be found around the $70,000 to $72,000 zone, where BTC has consolidated over the past few trading sessions. On the upside, the first major resistance is at $80,500, followed by potential resistance between $82,000 and $85,000. These levels correspond to historical highs and psychological thresholds, which could trigger selling pressure.
Market indicators provide conflicting signals regarding the future trajectory of bitcoin. The average directional index (ADX) stands at 33.14, indicating a strong upward trend. However, the Money Flow Index (MFI), currently at 71.03, is approaching the overbought zone, suggesting potential near-term corrections or consolidations if buying momentum weakens. This dynamic raises the question of whether bitcoin’s rise will continue or whether a decline is coming.
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