This week, the price of Bitcoin (BTC) approached the $36000 mark, but then suddenly reversed and corrected to around $34250. After rising nearly 30% in the past month, as some traders take profits and market participants evaluate whether the catalyst for the rebound is still effective, prices will naturally cool down
This week, the price of Bitcoin (BTC) approached the $36000 mark, but then suddenly reversed and corrected to around $34250. After rising nearly 30% in the past month, as some traders take profits and market participants evaluate whether the catalyst for the rebound is still effective, prices will naturally cool down.
On November 2nd, the bull market momentum that drove Bitcoin (BTC) up 27.9% was weakening as Bitcoin fell 2% in intraday trading. Bitcoin prices seem to be overheating, and BTC derivatives are a concern, despite positive market reactions to the Federal Reserve's decision to suspend interest rate hikes on November 1st.
The decline in Bitcoin prices has not worried all analysts, and some believe that Bitcoin is starting a bull market.
Let's take a closer look at the factors that affect Bitcoin prices today.
Bitcoin bulls cleared
October did not disappoint, thanks in part to the liquidation of short sellers, which brought Bitcoin prices to over $35000 so far this year.
Starting from November, the liquidation trend is reversing. On November 2nd, Bitcoin's long-term settlement rapidly surged to over $21.1 million within 12 hours, with over $28.2 million cleared in the previous 24 hours
When BTC bulls are liquidated without buying pressure from traders, the price of Bitcoin will be negatively affected. The transaction volume of Bitcoin has decreased by more than $7 billion from the year to date high of $14.7 billion set on October 24th.
Everyone's attention is focused on the Bitcoin ETF application
The short-term uncertainty in the cryptocurrency market does not seem to have changed the long-term prospects of institutional investors. Despite the harsh regulatory environment in the United States, BlackRock and Invesco Galaxy, two large institutions, are still listed on the Depository Clearing Company (DTCC) website.
Despite the urgency of major financial companies, the US Securities and Exchange Commission seems prepared to continue delaying the decision to approve Bitcoin ETFs until 2024. Even in the current low Bitcoin prices, institutional cryptocurrency funds experienced their largest weekly inflow in over a year on October 30th.
Will short-term macro pain lead to long-term gains for cryptocurrencies?
The price of Bitcoin continues to be directly affected by macroeconomic events, and further escalation of the conflict between Israel and Hamas, regulatory actions, and interest rate hikes may also continue to have some impact on the price of Bitcoin.
Although Federal Reserve Chairman Jerome Powell suspended interest rate hikes, Bitcoin prices did not immediately respond positively. The suspension of interest rates has led some analysts to believe that by Christmas, the price of Bitcoin may exceed $35000.
In the long run, market participants still expect the price of Bitcoin to rebound, especially as more and more financial institutions seem to be accepting Bitcoin.
Four Signs of Bitcoin Starting the Next Bull Market
As the likelihood of Bitcoin Exchange Traded Funds (ETFs) obtaining approval increases, six digit Bitcoin price forecasts have become increasingly common, especially with less than 180 days left until April 2024 when they halve.
From historical data, Bitcoin has experienced significant price fluctuations, experiencing multiple bull and bear markets. The current market situation suggests that Bitcoin may be about to enter a new bull market. The following are four signs that Bitcoin will enter the next bull market:
1. Increased trading volume: In the bull market of Bitcoin, there is usually a significant increase in trading volume. This is due to an increase in investor interest in the special currency, leading to an increase in trading activity. If we observe a gradual increase in Bitcoin trading volume, it may be a sign that a bull market is approaching.
2. Bitcoin block rewards halved: Bitcoin is generated through mining, and every time a certain amount of Bitcoin is excavated, the block rewards will be halved. In history, the bull market of Bitcoin has often been related to the event of halving block rewards. The next halving of Bitcoin block rewards will occur in 2024, which may become an important factor for Bitcoin entering the next bull market.
3. Institutional investors' interest has increased: In recent years, more and more traditional financial institutions have begun to turn their attention to Bitcoin. Large investment companies and banks have entered the Bitcoin market one after another, indicating that institutional investors' interest in Bitcoin is increasing. The influx of institutional investors may drive up the price of Bitcoin, triggering a new bull market.
4. Reduced Bitcoin Supply: The total supply of Bitcoin is limited, and it is expected to end up with only 21 million Bitcoins. As the mining difficulty of Bitcoin increases, the output of newly added Bitcoin gradually decreases. This means that the supply of Bitcoin is constantly decreasing and its scarcity is gradually increasing. Scarcity is an important factor driving the increase in asset value. When supply decreases and demand remains relatively constant, prices often rise.
BTC price history pattern, halved
The price trend of Bitcoin (BTC) often exhibits cyclical behavior. Analysts compared the current price trajectory with historical patterns, indicating that the potential bull market cycle is reminiscent of 2013 to 2017.
Similarly, the historical bull market of Bitcoin often follows a four-year cycle, often stimulated by events such as halving, which slows down the speed at which miners create and earn new Bitcoins.
The next halving event will occur in April 2024. Traditionally, a bull market can start a few months ago and continue until Bitcoin prices reach a historic high.
It is difficult to deny the periodicity of Bitcoin prices. On November 1, 2023, the prediction that Bitcoin prices will exceed $100000 is becoming increasingly common, as there are less than 180 days left to halve.
Bitcoin halved in 2024: everything you need to know
Although some people believe that the upcoming halving will be the most important so far, others believe that this time may be different.
Bitcoin Accumulation: Not Just Whales
Important stakeholders have shown confidence in Bitcoin by increasing their holdings. On chain analysis shows that the trend has reversed, with major investors trading more Bitcoin with stable currency, which may add momentum to a rebound of over $35000.
More importantly, Bitcoin 'whales', entities with at least 1000 Bitcoins, are showing signs of accumulation, which predates significant increases in history.
The above four signs all indicate that Bitcoin is about to enter the next bull market. However, investing in Bitcoin still carries risks, and investors should carefully evaluate their risk tolerance and make sufficient research and preparation.
Today's market hotspots:
1. Old DEFI: Uni, aave and other inflation supplements are doomsday chariots. The foam starts to grow, with a big rock collapsing.
2. Small ticket SNT and cake are inflated, and An An has opened a new peace treaty.
3. The 2.0 series of meme, such as pepe2, shib2, and doge2, have significant expansion. Pepe2.0 is a replica of Pepe, which swells 10 buds per month. Domestic dog bibi swells hundreds of buds.
4. The BRC20 pattern of the BTC inscription has changed, and Sats has surged and expanded, surpassing Ordi by 100 million US dollars. The nostrastes of the BTC lightning network have also expanded significantly.
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