What is fueling the current wave and will it last?
Analyst Miles Docher took to his latest analysis and said that Bitcoin is currently sitting at around $71,000, an all-time high. This week, it is important to consider whether Bitcoin can break these highs and what to expect in the coming weeks. The market is volatile, especially with the upcoming election.
The analyst explained how new Bitcoin outflows are being outpaced by ETF purchases. For example, only 490 new bitcoins were mined yesterday, while ETFs bought 11,820. This 24x difference indicates a supply glut, where demand exceeds supply, often resulting in price increases.
Major Factors Affecting Bitcoin Price Movement:
Bitcoin ETF flows
Recently, there has been an influx of capital into Bitcoin ETFs, with $900 million flowing yesterday and $4 billion over the past few weeks. This increase reflects strong demand from retail investors and institutional funds.
Macroeconomic factors
Many are turning to Bitcoin as an investment, with stocks, housing prices and gold at record highs. The current low inflation and Federal Reserve rate cuts are creating favorable conditions for Bitcoin investments.
Speculative betting on election results
Many investors are speculating how the upcoming election will affect Bitcoin prices. After the election, there is a sense of fear of missing out (FOMO) as traders prepare for potential price swings.
Key price levels
Bitcoin recently broke above key resistance levels, including the $70,000 mark. A successful weekly close above this level would be brutal, but traders should watch for any reversals.
Bitcoin vs. Gold
The Bitcoin-Gold chart shows a potential cup-and-handle formation, hinting that Bitcoin may hold the price of gold as a safe haven in the near term.
