The expectation of investors is to reach a new historical maximum but gradually. A progression that is accompanied by a greater push in its “legitimation” by the big players in the market and especially by funds, which have poured into value.
Bitcoin implemented the Taproot update yesterday, which aims to improve the privacy, efficiency and capacity of smart contracts on the network. “The Taproot update appears at a time when the cryptocurrency market is trading at record highs,” said Alejandro Zala, Country Manager at Bitpanda Spain, who highlights that the cryptocurrency rose 140% from its July low.
“EThe bulls may have some power left to drive the market higher as a result of the network upgrade. The bullish bias is still sustainable, given that the current level of the Fear and Greed Index is at 84/100, but it is not yet the highest level that has been seen ”, Zala added.
So far in November Bitcoin has appreciated 7.5%, after rising almost 40% in October. “From a technical point of view, we warned of the possible breakdown of the US $ 63,000 (which is now the first of the supports to keep), with the aim of entering a free rise,” said Javier Molina, spokesman at EToro Spain. Molina points to a new ATH at US $ 68,000 and a return to the control zone. “If the $ 63,000 is lost, the goal will be $ 58,000. That is the key area to watch. At the top, exceeding $ 68,000 again would put it on a free rise again. Watch out for the increase in positive sentiment, already in a zone of high euphoria”, Highlights the expert.
Right now a good part of the eyes are on Plan B and its Stock-To-Flow (SF2) prediction model that places the price of Bitcoin at US $ 98,000 per asset before the end of November. A unique model for this cryptocurrency that would represent a 54% advance over its current levels. Putting his prediction on the table does not reach 40% of the total, in a survey of 242,000 participants, who believe that it will reach levels of $ 100,000 by the end of the year.
But the estimates of Plan B, which have been fulfilled on numerous occasions, project much more: US $ 135,000 at the end of the year, as we see in the graph that it includes. This model, started in March 2019, is based on the relationship between the production of its supply and the current stock of Bitcoin, assessing that its scarcity in the market drives its price.
The truth is that the strength of Bitcoin by capitalization is also gaining strength of its own. We have seen it in the ranking that CompaniesMarketCap has established placing the asset as the eighth by capitalization, surpassing Tesla and Meta and behind silver, in a classification led by gold and, as far as companies are concerned, on the podium , with Microsoft, Apple and Aramco all three in excess of $ 2 trillion in market value. That leadership of gold, in fact, quadruples the capitalization of the global cryptocurrency market as a whole.
The premium indicators prepared by Investment Strategies place Bitcoin, in bullish mode and with an improvement of two points, the total score of the asset in 8.5 points of the 10 possible for the value. On the negative side, the business volume in the medium term stands out, which is decreasing as well as the increasing volatility, also in the medium term.
Source From: Ambito
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