Bitcoin Nosedives to $69,000, But Analyst Sees a Quick Recovery to $78K
Bitcoin’s price dropped to $69,000 following a brief surge earlier in the week. This dip also affected the broader market, but one notable analyst foresees a swift rebound, saying the fall aligns with his forecast.
The analyst believes Bitcoin will soon climb toward $78,000 if the $69,000 support level holds strong.
Bitcoin’s Drop Matches Analyst’s Forecast
On Thursday evening, Bitcoin traded at $72,500 but sharply declined to below $69,000 by Friday morning. The sudden pullback erased some of the gains from earlier in the week.
Bitcoin has lost 3.93% in the last 24 hours but still holds a 3.12% increase over the past seven days. Moreover, its trading volume is up by over 20% in the past 24 hours, currently at around $47.5 billion.
In an X analysis, Ali Martinez, a known analyst, stated that Bitcoin’s movements fit perfectly with his earlier predictions.
If #Bitcoin holds above $65,000, I’m looking for a move up to $72,000, a pullback to $69,000, and then a rally toward $78,000. Send it! pic.twitter.com/IiklFp4955
— Ali (@ali_charts) October 26, 2024
He said that if Bitcoin held above $65,000, it could reach $72,000, pull back to $69,000, and eventually rise to $78,000.
Martinez’s forecast now points to the $69,000 support zone as a critical level. If Bitcoin holds this support, the next likely move could take the price closer to $78,000.
Martinez believes this could be possible in the coming days, provided the support is sustained.
Technical Indicators Suggest Further Pullback
Beyond the price prediction, technical indicators add more context to Bitcoin’s recent movements. Bitcoin is currently near the upper boundary of the Bollinger Bands, a technical tool used to gauge price volatility.
Testing the upper limit of the Bollinger Bands usually signals an overbought condition, often leading to a retracement to the mean. This retracement suggests that Bitcoin may experience further downside before bouncing back.
The Relative Strength Index (RSI), which measures market momentum, also stands at 58.24. This level is considered neutral, indicating Bitcoin is neither overbought nor oversold.
However, it recently dropped from a higher RSI value, signaling that buying pressure may be weakening. This could pave the way for more short-term declines before the predicted rebound happens.
These technical indicators suggest Bitcoin is currently cooling off after a bullish run. However, the market may still see more downslides before momentum picks up again.
Search Trends and Retail Engagement Remain Low
Meanwhile, despite Bitcoin nearing its all-time high again, search trends show that retail interest has remained low.
Historically, retail engagement, measured by Google searches for “Bitcoin,” spikes during major bull runs. For instance, search trends skyrocketed during Bitcoin’s 2017 rally to $20,000.
A similar surge in search volume occurred during the 2020-2021 bull run when Bitcoin reached new all-time highs. However, in 2024, despite Bitcoin’s price moving closer to its previous peaks, Google search interest has remained relatively subdued.
In the first quarter of this year, search trends were higher when Bitcoin peaked at $73,750 in March. But over the past seven months, retail interest appears to have dwindled.
This pattern suggests that while Bitcoin’s price has climbed, retail participation has not yet reached its peak. The low level of search interest could mean that Bitcoin’s current rally might still have room to grow.
The outlook for Bitcoin remains cautiously optimistic, with technical indicators pointing to a possible short-term pullback. However, the analyst’s forecast and past patterns suggest that Bitcoin could stage a rally soon.
