After the U.S. presidential election, Bitcoin [BTC] experienced exponential growth, soaring from a low of $66,000 to a historic high of $99,800.
However, since reaching that high, it has experienced market adjustments, falling back to $90,742. The increased market volatility has left cryptocurrency analysts feeling conflicted, with some optimistic about breaking $100,000 while others believe it may decline.
One of the optimistic analysts is renowned cryptocurrency analyst Ali Martinez, who predicts a rebound in December based on the U.S. presidential election.
The historical performance of Bitcoin
Martinez believes in his analysis that historically, Bitcoin experiences a surge in December following the U.S. presidential election.
According to him, BTC has achieved significant gains in the past two cycles. Therefore, in 2020, BTC skyrocketed from a low of $17,570 to a high of $29,300, an increase of 66.84%.
In 2016, BTC rose from $740 to a high of $981, an increase of 32.56%.
This historical pattern indicates that Bitcoin's price significantly rises in December following the U.S. presidential election.
Therefore, based on historical experience, we can see that BTC may achieve substantial gains throughout the month. In this regard, Martinez predicts that the price of the king coin Bitcoin could reach between $125,000 and $140,000.
What the chart illustrates
Although Bitcoin has retraced since reaching its current peak, this king coin is still in a bullish phase. Therefore, the current situation only points to potential gains on the price chart.
For example, as of the time of writing, the Bitcoin NVT golden crossover point has surged from -0.13 to 1.1. When the NVT golden crossover point rises, it indicates long-term confidence in the asset's growth trajectory.
Thus, investors' valuation of the network surpasses the current on-chain activity and sees growth potential regardless of trading volume.
Additionally, the rise in MVRV long-short divergence further proves this long-term confidence.
The surge in this indicator suggests that bullish holders are increasingly confident, even though they are currently in a profitable position.
Lastly, as of the writing of this article, Bitcoin's stock-to-flow ratio has surged from a low of 105 to 494. The spike in SFR indicates that BTC is currently scarce and in low supply.
Generally, scarcity is the true measure of Bitcoin's value; when Bitcoin is scarce and demand rises, the price will increase.
In conclusion, Bitcoin is expected to rise further. The recent market pullback seems to be just a correction before another rally begins.
