Bitcoin’s Next Game Plan: Will It Skyrocket to $118K or Face a Major Drop?

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Bitcoin, the world’s leading cryptocurrency, has surged over 100% since the start of 2024, with most of those gains coming in the past few months, bringing its market capitalization to $1.83 trillion. But what’s next for Bitcoin? Analysts have laid out an important game plan, suggesting that Bitcoin could either soar to $118,000 or face a sharp correction of 20%-30% soon.

Why Bitcoin Is Rising?

Bitcoin (BTC) recently soared to an all-time high (ATH) of $93,207 before experiencing a slight pullback, stabilizing around $87,000. Meanwhile, the current surge can be attributed to two major factors. First, the recent U.S. presidential election result, which saw Republican candidate Donald Trump secure victory, has brought optimism to the market. 

Additionally, the Federal Reserve’s decision to cut interest rates by 25 basis points to a range of 4.50% to 4.75% has created a more supportive environment for alternative assets like Bitcoin, drawing even more investors into the market.

Game Plan for Bitcoin

Analysts have outlined two possible scenarios for Bitcoin’s price action moving forward.

Plan A suggests that Bitcoin could continue its rally, climbing another 10% to 20%, reaching somewhere between $104,000 and $118,000. However, this rise would likely be followed by a correction of 20% to 30%, which would bring Bitcoin back down to a more stable level.

Plan B suggests that Bitcoin might stabilize around its current levels, with a smaller rise toward recent highs before potentially facing a 20%-30% correction. Analysts say that if this correction happens, BTC’s price could drop to around $69,000–$79,000.

This might worry some traders, partly due to Bitcoin’s overbought daily relative strength index (RSI) readings. When the RSI goes above 70, it indicates strong buying momentum that may soon run out.