Analyst Discusses Potential New Bitcoin Record and Upcoming Market Correction

Bitcoin (BTC) finds itself at a pivotal moment after its recent surge beyond $106,000. Traders are contemplating whether the cryptocurrency will gain additional momentum to reach new heights or if it will pull back slightly to stabilize.

Market analyst Ali Martinez has shared insights into what may drive Bitcoin’s upcoming price movements. He forecasts that the cryptocurrency will eventually achieve a record high, although it remains uncertain if a correction is on the horizon first.

Will BTC Rise or Pull Back?

Martinez notes that BTC has encountered significant resistance near $107,000 after rallying over 42% in the past month. This level has historically marked pivotal moments for previous rallies, notably in December and January. The analyst emphasizes that a daily close above $107,000 would provide the necessary momentum for BTC to reach new highs; however, until that occurs, traders remain cautious.

As this wait persists, the Bitcoin Relative Strength Index (RSI) suggests that momentum appears stretched, placing the asset in overbought territory since mid-May. Such movements into this range have often preceded short-term pullbacks, indicating that BTC may be due for a slight retracement given the overbought signals from the RSI.

Moreover, large Bitcoin holders have been taking profits, with this group selling over 30,000 BTC since May 13. This level of profit-taking can create increased selling pressure, often resulting in significant price declines for assets.

Key Support and Resistance Levels

According to Martinez, should selling pressure escalate, BTC might drop to the support region between $95,850 and $98,730. Over 1.19 million wallets hold more than one million BTC at around $98,732, marking it as a crucial demand zone. If BTC were to fall beneath this support area, a more pronounced correction could occur.

Conversely, if Bitcoin manages to stay above the support metrics, it may consolidate and build upward momentum. Following that, $116,900 would be the next significant target. Therefore, Bitcoin’s price range reflects $98,131 and $116,900 as essential support and resistance levels in the coming weeks.

In recent days, the leading cryptocurrency has been consolidating, trading around $103,000 at the present time.