Will The US Elections Propel Bitcoin Past $74,000? Key Metrics To Track This Week
05 November 2024 - 8:42PM
NEWSBTC
In the wake of the US presidential election, Bitcoin (BTC) is
experiencing the expected volatility that often accompanies major
political events. Tuesday’s trading saw the largest cryptocurrency
fluctuating between $68,000 and $70,000, with the latter level
acting as resistance since Saturday. Market analysis firm Crypto
Birb has released insights into the potential impacts of the
election on Bitcoin’s price trajectory, suggesting that, based on
current indicators, Bitcoin could reach new record highs above
$73,700 in the days following the election. 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 firm notes the presence of over $470 billion in
volume from exchange-traded funds (ETFs) investing in BTC, further
contributing to market liquidity, which is critical for Bitcoin’s
price movements to the upside. Related Reading: Dogecoin
Price Rally Gains Momentum, Will DOGE Smash Through $0.18? However,
a market bloat of 51%, measured by the Net Unrealized Profit/Loss
(NUPL), indicates that a significant portion of Bitcoin holders are
in profit, potentially leading to increased selling pressure if
prices rise too quickly. The Market Value to Realized Value
(MVRV-Z Ratio), currently at 1.86, projects a potential price
target of over $263,000, suggesting substantial room for
growth. Notably, Bitcoin’s low correlation of 0.16 with the
S&P 500 indicates that its price movements are largely
independent of traditional equity markets, which could attract
investors seeking diversification. Historical Trends Suggest Strong
November Ahead Despite the bullish long-term outlook, the firm
suggests that traders should be cautious of short-term volatility.
Crypto Birb noted that the market is experiencing a spike in “price
randomness,” common occurrence during election cycles. Key
resistance levels are identified at $70,700 and $72,000, which
could prove critical in determining Bitcoin’s immediate path. The
daily trend shows that $70,000 is a pivotal breakout point, and the
firm suggests that a successful move above this threshold could
trigger further upward momentum to retest all-time high records.
The firm also highlights the current sentiment in the crypto
market, which is currently characterized by a “Fear and Greed”
index reading of 70, indicating a state of greed among
investors. Crypto Birb contends that this sentiment often
leads to heightened buying activity but can also signal a potential
pullback if prices rise too quickly. Additionally, mining costs are
estimated at around $80,700, suggesting miners are operating at a
loss if Bitcoin remains below this threshold. Related
Reading: XRP Price Gears Up: Is a Major Move on the Horizon?
Further strengthening the case for Bitcoin, historical data shows
that November has been a strong month for BTC, with an average gain
of 14.96% over the past nine years. This means that if the
cryptocurrency follows past movements, it could reach $79,000 by
the end of the month. In addition, the fourth quarter of the
past few years has shown an average gain of 50.86%, with the
maximum quarterly gain recorded at 470.44%, suggesting that BTC
could be poised for a significant rally in the coming weeks,
regardless of the US election results between Donald Trump and
Kamala Harris. When writing, the largest cryptocurrency on the
market was trading at $69,830, up 3% in the 24-hour time
frame. Featured image from DALL-E, chart from TradingView.com
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