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Bitcoin tops $94,000, on the way to six-figure pricing

The world’s biggest and best-known cryptocurrency has more than doubled this year

Published: Wed 20 Nov 2024, 10:11 PM

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Participants contemplete Bitcoin related art during Adopting Bitcoin 2024 – The high signal Bitcoin conference for builders, in Nuevo Cuscatlan, El Salvador. — Reuters

Participants contemplete Bitcoin related art during Adopting Bitcoin 2024 – The high signal Bitcoin conference for builders, in Nuevo Cuscatlan, El Salvador. — Reuters

Bitcoin seems well on the way to touch a historic $100,000 as experts widely believe that the largest cryptocurrency still remains undervalued.

Bitcoin rose to a fresh record high above $94,000 on Wednesday as a report that Donald Trump’s social media company was in talks to buy crypto trading firm Bakkt boosted expectations of a crypto-friendly regime under his incoming administration, Reuters reported.

The world’s biggest and best-known cryptocurrency has more than doubled this year. It was last at $94,291 just under a record high of $94,378.

Bitcoin surged up to 16 per cent in the first half of the week. Reports suggest the continuation of the ongoing rally as they highlight that the current trading level is still not overvalued and that project targets are above $100,000 in the coming weeks.

Bitcoin has rallied over 35 per cent since the US Presidential election on November 5. “Bitcoin is still not overvalued,” says Crypto Quant in its weekly report.

The report explains that at current price levels, valuation metrics like the Market Value to Realized Value (MVRV) ratio suggest that Bitcoin is still outside the overvalued territory.

“Bitcoin has broken the rising trend up in the short term. This signals an even stronger growth rate. There is no resistance in the price chart and further rise is indicated. In case of a negative reaction, the currency has support at approximately 66000 points. Positive volume balance indicates that buyers are aggressive while sellers are passive, and strengthens the currency. Bitcoin is overall assessed as technically positive for the short term,” Manish Chhetri, analyst at FXStreet, said in a note.

Cyclical peak of Bitcoin

Ryan Lee, chief analyst at Bitget Research, says that the predicted timing for Bitcoin’s peak varies according to different indicators. “Specifically, Bitcoin is known for its roughly four-year cycle, typically coinciding with its halving events. Halving reduces the reward for mining new blocks, historically leading to price increases due to reduced supply. The last halving occurred in April 2024, so if this cycle remains consistent, the peak or “top” of the cycle may occur around late 2025. According to some analytical models, this could be between August and September 2025,” he said.

Another approach to predicting the cycle top is the pi cycle top indicator, which is considered capable of predicting cycle tops within days. “This indicator uses moving averages to identify when Bitcoin might reach its peak. If its past accuracy holds true, we could see a peak around December 2024 or January 2025, which aligns with Bitcoin’s historical pattern of reaching new all-time highs after the midpoint of its cycle,” Lee said.

Market sentiment and technical analysis present a different outlook, suggesting that Bitcoin may reach a new high within six to nine months after a mid-cycle peak, which is estimated to occur around early 2025, Lee said. “This projection places a potential peak between late 2024 and mid-2025. Price target predictions vary significantly, but some analysts have mentioned the possibility of Bitcoin reaching $118,928 or even climbing as high as $130,000 to $150,000 by late 2025,” he added.

New ETF options open doors for investors

Shivam Thakral, CEO of BuyUcoin, India’s second-longest-running digital asset exchange, said: “In the last 24 hours, Bitcoin has achieved a remarkable milestone, climbing to a high of $94,000 following the launch of spot Bitcoin exchange-traded fund (ETF) options on the Nasdaq. Investors highlight that this new trading option enhances market sophistication and provides greater flexibility for investment strategies, potentially attracting more institutional capital. Even though regulatory changes are important, full adoption depends on closer connections with conventional finance, allowing for more advanced investment approaches and a strong market ahead. Investors maintain a positive perspective, foreseeing ongoing price increases for Bitcoin and a rise in trading volumes for different ETFs.”

“Cryptocurrencies have soared since the Nov. 5 U.S. election as traders bet President-elect Trump’s promised support for digital assets would lead to a less restrictive regulatory regime and inject some life back into bitcoin after a listless few months. The growing excitement has taken the global cryptocurrency market’s value above $3 trillion to a record high, based on analytics and data aggregator CoinGecko,” said Vijay Valecha, chief investment officer, Century Financial.



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