Miami, Florida – The price of Bitcoin has skyrocketed by nearly 40% in the last month, sparking speculation among analysts about the potential for further growth.
Following the U.S. presidential elections, Bitcoin experienced a sharp increase from a low of $66,000 to a record-breaking high of $99,800. However, the cryptocurrency has since undergone a market correction, falling back to $90,742, leading to mixed sentiments among crypto analysts regarding its future trajectory.
Popular crypto analyst Ali Martinez has highlighted a historical trend that suggests Bitcoin tends to surge in December after presidential elections in the United States. Martinez pointed out that in 2020, Bitcoin saw a significant jump from $17,570 to $29,300, representing a 66.84% increase. Similarly, in 2016, the cryptocurrency increased from $740 to $981, marking a 32.56% rise. This pattern of price spikes following elections has led Martinez to predict that Bitcoin could reach anywhere between $125,000 to $140,000 in the coming weeks.
Despite the recent market correction, Bitcoin has remained in a bullish phase, with indicators such as the NVT Golden Cross and the MVRV long/short difference pointing towards potential price gains. The NVT Golden Cross, for example, has risen from -0.13 to 1.1, indicating long-term confidence in Bitcoin’s growth prospects. Similarly, the increasing MVRV long/short difference suggests that long position holders are becoming more confident, despite being profitable at the moment. Furthermore, the stock-to-flow ratio has surged from 105 to 494, signaling the cryptocurrency’s scarcity and low supply, which typically leads to price increases.
In light of these factors, many investors believe that Bitcoin is well-positioned for further gains, with the recent market correction seen as a temporary pullback before another upward trend begins. The anticipation of a December rally, combined with positive indicators on the price charts, has created a sense of optimism among crypto enthusiasts about the future of Bitcoin.