In the wake of the US presidential election, bitcoin (btc) is experiencing the expected volatility that often accompanies major political events. In trading on Tuesday, the largest cryptocurrency fluctuated between $68,000 and $70,000, with the latter level acting as resistance since Saturday.
Market analysis firm crypto Birb has released information on the potential impacts of the election on bitcoin's price trajectory, suggesting that based on current indicators, bitcoin could reach new all-time highs above $73,700 in the days following the elections. elections.
bitcoin Price Could Soar Above $263,000
In a recent x.com/crypto_birb/status/1853852322683605499″ rel=”nofollow”>social media updatecrypto Birb highlighted several key figures for traders and investors, including bullish trends at the 200- and 50-week simple moving averages (SMA), currently at $59,200 and $40,700, respectively, pointing to a long-term bullish outlook for the bitcoin price.
The firm highlights the presence of more than 470 billion dollars in volume of exchange traded funds (ETFs) that invest in btc, further contributing to market liquidity, which is critical to bitcoin's bullish price movements.
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However, market inflation of 51%, as measured by net unrealized gain/loss (NUPL), indicates that a significant portion of bitcoin headlines They make profits, which could lead to more 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.
In particular, bitcoin's low correlation of 0.16 with the S&P 500 indicates that its price movements are largely independent of traditional ones. stock marketswhich could attract investors looking for diversification.
Historical Trends Suggest Strong November Ahead
Despite the long-term bullish outlook, the company suggests traders should be wary of short-term volatility. crypto Birb noted that the market is experiencing an increase in “price randomness,” which is common 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 fundamental breaking pointand the company suggests that a successful move above this threshold could trigger further bullish momentum to retest all-time highs.
The firm also highlights the current sentiment in the cryptocurrency market, which is currently characterized by a “Fear and Greed” index reading of 70, indicating a state of greed among investors.
crypto Birb maintains that this sentiment often leads to increased buying activity, but can also signal a potential pullback if prices rise too quickly. Furthermore, mining costs are estimated at around $80,700, suggesting that miners are operating at a loss if bitcoin remains below this threshold.
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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 last nine years. This means that if the cryptocurrency follows past movements, it could reach $79,000 by the end of the month.
Furthermore, the fourth quarter of recent 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 meeting in the coming weeks, regardless of the results of the US elections between Donald Trump and Kamala Harris.
At the time of writing, the largest cryptocurrency on the market was trading at $69,830, up 3% in the 24-hour period.
Featured image of DALL-E, chart from TradingView.com
