Coming to X on November 22, crypto @MortensenBach presented a bullish outlook for bitcoin (btc), predicting that the coin will not only surpass $70,000 in the coming months but also set a new all-time high, stoking demand for shares of bitcoin mining companies such as Riot Blockchain, Marathon Digital, and the rest.
bitcoin Trading Above 20 Period MA on Monthly Chart
The monthly chart noted bitcoin‘s historical tendency to launch parabolic advances following decisive breakouts above its 20-month simple moving average (20 SMA). As of late November 2023, bitcoin has held firm.
As evidenced in the monthly chart, buyers are taking advantage of the gains recorded in October, when prices recovered from losses and rose. This rally was sparked by broader market optimism, which supported cryptocurrency prices.
With prices now firmly trending above the dynamic reaction line on the monthly chart, the trader believes that a bull market is ahead and that bitcoin will make further gains in the coming sessions. In addition to the break above the 20-month moving average, the analyst sees increasing bullish momentum, according to the MACD technical indicator.
Still, it is worth noting that, despite the analyst’s optimism, the technical indicators in use, the MACD and the MA, are lagging. Consequently, there is no guarantee that prices will rise, going from spot levels to almost doubling above $70,000 in 2024 and in the months to come. As of November 23, btc prices remain firmly above $37,000 and more than double the November 2022 lows, when prices fell below $16,000.
Furthermore, it remains to be seen how the shares of bitcoin mining companies like Riot Blockchain will perform in the next stage after halving. However, historical performance shows that its shares tend to recover at the same pace as btc spot prices.
Whales are piling up, will btc emerge?
Still, @MortensenBach’s preliminary analysis is closely related to on-chain insights conveyed by CryptoQuant, a blockchain analysis platform. According bitcoin-Accumulation-Continues-Exchange-Reserves-reach-lows-not-seen-since-Sept-” target=”_blank” rel=”nofollow”>dataMore whales are moving their btc off exchanges in large chunks.
With big players showing confidence and backing bitcoin, it could suggest that they expect prices to rise. This outlook is further driven by the development of fundamental factors, including regulatory measures and general investor sentiment.
bitcoin prices were spared the effect of the US Department of Justice ruling on Binance. Although prices fell slightly below $37,000, the bulls have returned and the coin is trending above $37,000. The market is following the Securities and Exchange Commission (SEC) to approve the first bitcoin spot ETF in the country.
Featured image from Canva, TradingView chart
