Bitcoin hits new all time highs, will this rally continue in November?
Since the beginning of 2021, bitcoin has remained the undisputed top crypto-asset on the market cap chart with its total price range in October being "$23,205 larger in USD value."
Bitcoin's value last month has been more than the crypto's entire price range from genesis to December 2020!
After the last exciting weeks, bitcoin has now consolidated between its new high of $68,493 and a weekly low of about $60,493, at press time. As another month begins and predictions begin to flood the market, let’s recap the events that got us to these price peaks, in the first place.
Bitcoin closed October on a strong note because of several factors that increased the crypto's value. Like El Salvador’s decision to "buy the dip:" The Central American nation recently acquired 420 BTC for nearly $25 million, and on the back of this event, the price of bitcoin increased by 4% in 24 hours, at the time.
The launch of a ProShares Bitcoin Strategy ETF that launched last month coincided with new highs and primed bitcoin for a price appreciation. October was also the month of reassurances from US regulators, who said that the US government has no intention to ban the crypto-asset.
With year-end holidays around the corner, November has historically been a month of impressive price action in the crypto economy. It will be interesting to watch whether bitcoin will continue towards uncharted territories in this 11th month, making November one to remember again.
Recently, the pseudo-anonymous crypto analyst Plan B made a bold prediction for BTC prices and estimated that the price of bitcoin in November could go as high as $98,000. So far, PlanB has been almost right about the crypto’s prices earlier in August and September, seen in the tweet below.
But does this mean that long-term hodlers can prepare to harvest returns? Bitcoin's high prices may spell good news and validate the crypto's existence, but a possibility that this trend could reverse, even temporarily, can't be disregarded. For years, bitcoin has reached highs only to fall to a range that was higher than earlier bitcoin cycles. This is one reason why Bitcoin critics have long contended that the crypto-asset moves in a bubble-like fashion. Nevertheless, November 2021 could see a short-term drop in bitcoin price, before it launches to a new high again.
In conclusion, after an exciting four weeks in October, and an impressive beginning this month, November does look promising. In the event of a temporary correction, bitcoin investors can take advantage of any price drops as good buying opportunities.
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