Analyst Backs Bitcoin Rally To $174,000 If This Support Remains Intact – Details

[Ben Graham]

The Bitcoin market has recorded high levels of volatility in previous weeks, resulting in significant corrections and a fragile bullish sentiment. Amid this delicate market, a market analyst with X username PlanD is projecting an incoming parabolic rally that hinges on the strength of a crucial support level.

Here’s Why Bitcoin Bulls Must Preserve $94,500 Price Point – Analyst

In a recent post on November 15, PlanD drew market attention to a potentially bullish situation on the BTCUSDT chart. Notably, the market expert states that Bitcoin’s price movement over the last four months has created a symmetrical expanding triangle.

Following the price losses seen in the past week, Bitcoin presently trades near the lower boundary of this formation at $94,500, creating a high-stakes situation. According to PlanD, if market bulls lose this support zone, it could result in an extended market correction to around $72,000 – $73,000, suggesting a potential 24% devaluation from current market prices.

On the other hand, if the price holds above $94,500, the analyst expects a price rebound to around $131,000, which corresponds to the upper resistance zone of the broadening symmetrical triangle. However, a potential volume-driven breakout from this formation amid high bullish pressure could push Bitcoin’s price to around $174,000, representing an 83% gain on present market prices.

 

The Bullish Catalysts

While staying above $94,500 is crucial to preserving Bitcoin’s bullish structure, PlanD has also listed the market factors that are important to stimulating a rally. One of these factors is expectations of a continuous reduction in interest rates by the US Federal Reserve. 

Following recent data that shows a weakening job market, several analysts are backing the Fed to implement another rate cut in December despite an initially hawkish tone in October. This fall in interest rate is expected to increase investor access to capital and drive up interest in risky investments, e.g, cryptocurrencies like Bitcoin.

Another catalyst mentioned by PlanD is the Bitcoin Spot ETF inflows. Notably, these products have also experienced a turbulent moment amid Bitcoin’s price troubles, with a monthly net outflow of $2.33 billion in November alone. The analyst’s theory for a bullish rebound indicates the need for an immediate reversal in these fortunes.

Finally, PlanD references the ongoing progress in US regulatory clarity on digital assets as another bullish catalyst to sponsor demand and drive market price upward in the coming weeks.  At press time, Bitcoin continues to trade at $95,874, reflecting a 0.46% loss in the last day.