Bitcoin extends gains looking at price action over the past few trading days. At spot prices, buyers are ‘hungry’ and aiming not only to confirm the rally of the past two days, but also to close above the March 2024 highs of around $74,000.

Bitcoin “Golden Cross” forms

The optimism has been confirmed in the chain. On X, one analyst notes that the market value to realized value ratio (MVRV) has exceeded the 365-day moving average.

Related literature: Crypto Groups Challenge US SEC Over Airdrop Rules in Ongoing Lawsuit – Details

The MVRV ratio is a metric that on-chain analysts use to measure the average profit (or loss) of BTC holders at each price point. When the MVRV ratio rises above the 365-day moving average, this has historically been considered a ‘golden cross’ and has preceded sharp price gains.

Buy signal prints | Source: @ali_charts via X
Buy signal prints | Source: @ali_charts via X

If this development develops as it does nowthere will be a good chance that Bitcoin will extend and close above key resistance levels, in this case $74,000. Currently, the impressive rally above $72,000 to as high as $73,000 on October 29 could be a sign of strength, allowing bulls to prepare for the next wave of demand.

As bulls prepare to break $74,000, how quickly it grows and eventually breaks $86,000 will be critical. In a post on X, an on-chain analyst said a close above $86,200 will determine the ‘fate of the bulls’. Once buyers overcome this barrier, they will need “strong bullish momentum.” After that, the analyst said, prices will evolve as “what everyone has been waiting for.”

In recent months, especially after the rally to nearly $74,000 in March 2024, BTC holders have predicted sharp price increases, pushing prices towards $100,000.

Bitcoin price rises on daily chart | Source: BTCUSDT on Binance, TradingView
Bitcoin price rises on daily chart | Source: BTCUSDT on Binance, TradingView

As the analyst insinuates, a close above $86,200, the “high-risk upper limit” based on Bitcoin’s short-term analysis and risk assessment charted by CryptoQuant, could easily see BTC soar to $100,000.

Market forces will determine the pace of growth

How quickly BTC explodes to $100,000 will depend on several factors. The inflow from institutions will be crucial. Encouragingly, demand is picking up, especially in the case of spot Bitcoin ETF issuers’ net flows on October 29, as seen on SosoValue. More than $870 million worth of shares were purchased.

Related literature: Bitcoin Approaches New ATH Amid Positive Seasonality in Q4: Report

Demand for BTC increases on Binance | Source: @hyblockcapital via X
Demand for BTC is rising on Binance | Source: @hyblockcapital via X

In addition to institutions: parallel market data shows that retailers open leveraged long positions on perpetual platforms and buy on the spot, especially on Binance. However, on Coinbase, the spot market is selling upwards.

Feature image from Canva, chart from TradingView

By newadx4

Leave a Reply

Your email address will not be published. Required fields are marked *