Emily Walker
Bitcoin achieved a remarkable record price of $89,940 on Binance this Tuesday, driven by the excitement surrounding Donald Trump’s victory in the US presidential election. Trump’s commitment to creating a national Bitcoin reserve and exploring Bitcoin as a means to reduce the national debt has amplified this market enthusiasm.
Bitcoin Aiming for $102,000
In this optimistic climate, noted Bitcoin analyst Willy Woo (@woonomic) shared his predictions regarding Bitcoin’s future price movements on X. He outlined crucial price milestones, marking a range of $88,000 to $91,000 as the first target before looking towards $102,000.
Woo explained that once Bitcoin surpasses its previous highs, it enters a phase of price discovery without prior resistance levels, which can lead to significant price fluctuations.
He detailed two methods to pinpoint new resistance in this scenario: utilizing Fibonacci bands and analyzing the liquidation points of market positions. Woo indicated that the range from $88,000 to $91,000, recently reached, should stabilize as it corresponds to both local Fibonacci levels and the positions of short sellers who have been liquidated.
“We have achieved the $88-91k target. Now, consolidation is expected here,” he remarked, adding that this marks the conclusion of mandatory buying from those shorting Bitcoin.
He further noted that $102,000 is the next significant Fibonacci retracement level, derived from the highest point of the last cycle and the lowest of the current one. “Let’s monitor where new liquidations gather, but for now, that’s our next target based on Fibonacci analysis,” he stated.
Woo also mentioned the CME gap, which refers to price discrepancies in Bitcoin futures often observed after weekends or trading halts. Responding to a query from user Bill O’Rights (@ajdavault) about its impact, Woo indicated that if the CME gap is addressed, it would fall under the consolidation phase. “$88-91k was the target prior to a cooldown phase,” he emphasized. Recently, a new CME gap appeared between $78,000 and around $80,700, with Bitcoin filling every CME gap formed since mid-March 2024, although not all gaps historically close.
Another user highlighted potential resistance based on a technical analysis from Sven Henrich, who observed that Bitcoin is nearing a significant trend line resistance with a notable negative RSI divergence, reminiscent of the peak in November 2021.
Woo recognized Henrich’s analysis but insisted that fundamental elements hold greater weight than traditional technical aspects. “It’s crucial to consider the fundamental demand and supply dynamics, driven by real investor activity, global liquidity, and market positioning, which are distinctly altered now,” he stated.
When asked about Fibonacci levels, Woo agreed on their role in technical analysis but stressed their improved efficacy when integrated with fundamental market considerations. “I’m not dismissing it,” he added regarding traditional analysis, “but its effectiveness rises in conjunction with the fundamental landscape.”
As of the latest update, Bitcoin was priced at $87,492.