Bitcoin Price Prediction: Will BTC Rebound After $95K Drop?

Bitcoin (BTC) slid below $95,000 during Wednesday’s mid-morning New York trading session, reinforcing short-term bearish sentiment. The cryptocurrency has struggled to regain upward momentum since mid-November, leaving investors wondering what’s next.

The upcoming second inauguration of pro-crypto President-elect Donald Trump Donald Trump Donald Trump is an American former president politician, businessman, and media personality, who served as the 45th president of the U.S. between 2017 to 2021. Trump earned a Bachelor of science in economics from the University of Pennsylvania in 1968. Trump won the 2016 presidential election as the Republican Party nominee against Democratic Party nominee Hillary Clinton while losing the popular vote. As president, Trump ordered a travel ban on citizens from several Muslim-majority countries, diverted military funding toward building a wall on the U.S.–Mexico border, and implemented a family separation policy. Trump has remained a prominent figure in the Republican Party and is considered a likely candidate for the 2024 presidential election President has created excitement in the market. However, analysts caution this could turn into a “sell-the-news” event, with the hype prompting profit-taking. Adding to the uncertainty, Bitcoin’s Futures Open Interest (OI)—a measure of midterm market expectations—has been flat for two months, signaling hesitation among traders.

Will Bitcoin Fall Below $90K?

Concerns are growing that Bitcoin could dip below $90,000 in the days ahead. Yet, there’s hope for a turnaround based on the Market Value to Realized Value (MVRV) indicator, which is currently above the 1-year Moving Average (MA) of 2.18. Historically, this suggests a potential rebound may be coming.

Bitcoin’s price has only traded above a 3.2 MVRV ratio on 5% of days in its history. This level, often linked to “extreme euphoria,” could push Bitcoin’s value to approximately $132,000 if reached, according to Glassnode.

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Market Picture

Despite recent struggles, Bitcoin continues to attract interest from institutional investors. Confidence in Bitcoin as a reliable store of value is rising, and more funds are expected to flow from traditional assets like gold into the cryptocurrency.

Additionally, the Trump administration has hinted at adopting a strategic Bitcoin reserve for the U.S., a move that could inspire other nations to follow El Salvador’s lead. With growing demand from long-term investors, Bitcoin’s limited supply could drive further price increases.

For now, all eyes are on whether Bitcoin’s next big move will confirm the anticipated rebound or extend its bearish trend further.

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