The cryptocurrency market has seen strong growth over the past week, with Bitcoin trading in a range of $62,270 to $69,000. Since the start of the week, Bitcoin (BTC) has risen by 8.98%, reaching $68,268, while Ethereum (ETH) gained 7.03%. Both assets have then dropped, currently trading at $67,543 and $2,669 respectively.
Bitcoin Preparing To Break Above $80,000
On the weekly timeframe, Bitcoin, which has been consolidating in the range of $55,000-70,000 for the last six months, is technically preparing to break through the historical maximum and surge to at least $80,000. This consolidation took place while the rest of the crypto market was mostly declining (except for memecoins and several key assets like Solana).
The selling pressure of the bankrupt exchange Mt. Gox, the negative effects of the US SEC lawsuits, and the "expulsion" of market makers from the US have already been absorbed. Inflows into exchange-traded funds (ETFs) are stable. According to on-chain analytics from IntoTheBlock, whale wallets, which hold from 1,000 to 10,000 BTC, have been accumulating coins all this time. It is now difficult to imagine fundamental or realistically predictable macroeconomic and political factors that could prevent "digital gold" from showing a quality performance in the fourth quarter of 2024.
Analysts from crypto exchange ChangeNow attribute Bitcoin’s potential to reach a new all-time high (ATH) in the coming weeks to three main factors:
- Addresses that bought Bitcoin around $68,500 are particularly focused on a push to $70,000. This price point holds psychological significance for about 220,000 wallets, and investors in this range may play a role in supporting BTC during a breakout.
- The number of crypto users interacting with the market has surpassed 320,000, which typically leads to increased volatility.
- In the options market, bullish sentiment is growing, with demand for call contracts expiring on November 8 and strike prices between $70,000 and $75,000, signaling expectations of a new all-time high for Bitcoin soon.
Despite the subsequent drop to the $67,000 level, the monthly candle closed nearly perfectly, signaling the potential for an all-time high (ATH) soon. A rebound early in the week could offer a good buying opportunity, especially as addresses holding BTC around $68,500 are likely to support the price.
Ethereum Needs To Break $2,800 For Further Growth
The ETH charts see a neutral monthly candle closure, needing momentum to break $2,800 for further growth, with an optimistic target of $3,800. The weekly close above $2,814 is crucial for a bullish scenario. ETH is likely to surge after Bitcoin reaches a new ATH. An impulse is expected at the moment when BTC renews ATH and starts consolidation. If this chart begins to grow — this is a good sign.