Weekly Technical Overview: Bitcoin Indicates Bullish Momentum In November
The price of one Bitcoin is currently hovering around $65k on KuCoin and is ready to make another higher high shortly. Who would have anticipated this amazing recovery from a mere $30k to $65k (116%+ increase) in less than 3 months? This only explains the power of Bitcoin in the crypto market and the strong fundamentals behind it.
In the past week, Bitcoin price action stalled in the first half of the past week, but BTC stood out as the most liquid and heavily traded digital coin. After its significant appreciation in October, the godfather of cryptos is again portraying many factors that could eventually boost the market price, breaking its current all-time high and making a brand new one.
Since the beginning of November, the Bitcoin token price has grown by over 9%. This price rise is commendable considering the consolidation week BTC went through the week before. Despite a clear selling pressure on the lower timeframes, we can see how the bulls managed to keep the price above $60k.
As you can see in the above BTC price chart, the week started with a strong bullish candle forming on the 4-hour time frame. This took the BTC price from somewhere below $60k to beyond the $62k level. Post that, we can also see the fight between buyers and sellers up until Saturday. Although the sellers seem strong, they couldn't manage to take the price below the $60k level.
If the price had broken the $60k support, there were chances of BTC dipping down to $57k and below. However, buyers were successful in driving the BTC price higher. The price slowly inched up to reach the $61k level, took support, and shot up to reach the $65k mark. As of this writing (8th November, 1:41 UTC), the BTC price was just below the $65k level on KuCoin.
With just 2.1% below its previous ATH ($66.8k), the bulls could certainly create a brand new ATH. With the current bullish momentum, it shouldn't surprise to see the price reaching $68k and beyond. This strengthens the hope for long-term Bitcoin investors and holders as the $100k price target is very much a possibility by the end of the year.
There is still a possibility of a pullback to $54k in case of any significant selling momentum but the odds of it happening are very less compared to BTC achieving a brand new ATH in the upcoming week. Expert predictions say that the next all-time high could be coming in at around $72k - $75k.
Fundamental Drivers That Could Contribute To BTC’s Bull Run
In the last two weeks, Bitcoin has been moving sideways, forming a range. At the $60k psychological barrier, we saw strong indecision between buyers and sellers, which indicates a reduction in price volatility. This also means that a predominant move is about to occur.
One such fundamental driver that could lead BTC's price higher or even drive it to a new ATH could be the launch of a spot Bitcoin ETF, which is currently awaiting approval by the Securities and Exchange Commission. To back this statement, we reference recent history where Bitcoin's price exploded to make a brand new ATH at around $67k right after the launch of the first-ever Bitcoin futures ETF by ProShares.
The same move could occur in the Bitcoin market if the BTC spot ETF gets approved and is publicly traded in the US stock market. As discussed above, BTC could easily record its next ATH at around $75k if the approval gets through.
Also, Grayscale Investments - a digital currency investing services company, is filing for its own spot ETF. The SEC has acknowledged this filing on 2nd November and will provide its decision in 40 days (before 12th December). If SEC approves the proposal, Grayscale will be launching its first-ever Spot Bitcoin ETF, which will add more credibility to the digital asset space.
While a set of buyers are bullish about the news coming out during the holiday season, SEC could seek an extension of up to 240 days to provide its decision.
Stay tuned and watch the KuCoin Blog for more interesting educational crypto content. All the best!
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