Strong Market Index: The Market Value to Realized Value (MVRV) ratio of Bitcoin has shifted to an upward trend, indicating significant price increase potential. History shows that when the MVRV ratio reaches certain thresholds, it often coincides with Bitcoin's bullish cycles. The current level suggests growth potential beyond the previous all-time high of $69,000.
U.S. Presidential Election: The 2024 election is positively impacting Bitcoin, as pro-cryptocurrency policies from candidates like Donald Trump create optimism. History indicates that major political events and regulations have significantly influenced Bitcoin's trajectory. Analysts believe this environment may boost investor confidence, driving prices higher.
Approval of Institutions and ETFs: The approval of spot Bitcoin ETFs by the U.S. SEC has injected fresh capital into the market. This development is expected to expand investment access to Bitcoin and maintain bullish momentum. Interest from institutions continues to rise, with major asset managers accumulating Bitcoin.
Strong Support Level: The current price of Bitcoin is strongly supported in the range of $66,700 - $68,730, as indicated by on-chain data. This range serves as a consolidation area, minimizing downside risk while paving the way for the next phase of the bullish trend.
Technical Analysis: The price action of Bitcoin aligns with historical patterns, such as breaking through significant Fibonacci extension levels. If the price holds above $40,000, the 6.618 Fibonacci extension suggests the potential to rise to $120,000.
Global Economic Factors: Macroeconomic factors such as inflation, economic uncertainty, and de-dollarization efforts are driving both institutional and retail investors toward Bitcoin as a hedge, further increasing demand.
Currently, Bitcoin (BTC) is trading at around $91,000, reflecting a strong upward trend. However, analysts advise caution as market corrections may occur during the consolidation phase. If Bitcoin maintains its current momentum, new all-time highs could be achieved in the next cycle.
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