As a seasoned analyst with over two decades of experience in the financial markets, I have witnessed numerous bull and bear cycles, market crashes, and economic recoveries. The current trajectory of Bitcoin (BTC) is intriguing, to say the least. Based on my analysis and the insights provided by Crypto Birb, it appears that we are looking at a potentially exciting time for BTC investors.
Following the U.S. presidential election, Bitcoin (BTC) is undergoing its typical price fluctuations that usually occur around significant political events. On Tuesday alone, the digital currency oscillated between approximately $68,000 and $70,000, with $70,000 serving as a resistance point since Saturday.
According to market analysis company Crypto Birb, they have provided predictions about how the election might influence Bitcoin’s price trend. Their analysis indicates a possibility of Bitcoin surpassing previous highs and reaching approximately $73,700 or more in the post-election period.
Bitcoin Price Could Soar To Over $263,000
In a recent social media update, Crypto Birb highlighted several key figures for traders and investors, including the upward trends in the 200-week and 50-week simple moving averages (SMAs), currently at $59,200 and $40,700, respectively, which point to a bullish long-term outlook for the Bitcoin price.
The company observes that more than $470 billion worth of transactions from Exchange-Traded Funds (ETFs) investing in Bitcoin have been recorded, thereby enhancing market fluidity. This increased liquidity plays a vital role in facilitating Bitcoin’s price increases.
Yet, a 51% surge in market size, as indicated by the Net Unrealized Profit/Loss (NUPL), signals that many Bitcoin owners are currently making a profit. If the price rises rapidly, this could lead to heightened selling pressure due to more individuals choosing to cash out their profits.
Based on the current Market Value to Realized Value (MVRV-Z) ratio of 1.86, there’s a projected price target of more than $263,000, implying significant potential for further price increases.
Significantly, Bitcoin’s weak connection (0.16) to the S&P 500 suggests that its price fluctuations mostly occur independently of conventional stock markets. This characteristic might entice investors who aim for portfolio diversification.
Historical Trends Suggest Strong November Ahead
As an analyst, I’d advise a cautious approach to short-term trading given our long-term optimistic view. The current crypto market seems to be exhibiting heightened “random price fluctuations,” which are often seen around election periods, as per my observations with Crypto Birb.
Important levels of resistance have been marked at $70,700 and $72,000, which may significantly influence Bitcoin’s short-term direction. The current daily trend indicates that $70,000 is a crucial point for a breakout, and they advise that surpassing this level could lead to additional bullish movement, potentially aiming to revisit previous all-time high milestones.
The company additionally emphasizes the prevailing mood in the cryptocurrency market, currently marked by an “Appetite for Risk” level of 70, suggesting that investors are predominantly driven by greed at this time.
crypto_Birb argues that such sentiment frequently fuels increased purchasing, yet it could also indicate an impending dip if bitcoin’s price increases too rapidly. Furthermore, the mining costs are roughly estimated to be around $80,700, implying miners would incur a loss if bitcoin stays below this level.
Evidence from previous years supports the argument for Bitcoin’s growth. Notably, November has consistently been a favorable month for BTC, averaging a rise of approximately 14.96% over the past nine years. If this pattern continues, Bitcoin could potentially reach a value of around $79,000 by the end of November.
Moreover, it’s worth noting that the fourth quarters over the past years have demonstrated an average increase of approximately 50.86%. Notably, the highest quarterly growth was 470.44%, implying a potential large surge for Bitcoin in the upcoming weeks, irrespective of the outcome of the US election between Donald Trump and Kamala Harris.
In the course of composing this text, Bitcoin, the most significant digital currency available, was being exchanged at approximately $69,830, marking a 3% increase over the past 24 hours.
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2024-11-05 22:52