While Bitcoin’s price valuations aren’t cheap, they also don’t appear overstretched. Bitcoin’s price increased by more than 40% last month, reaching a new high of $66,900, on the expectation that the recently launched ProShares ETF linked to crypto futures will bring more money into the market.
Because of the steep rise in prices, many investors are wondering if the party is coming to an end, while others are reading bitcoin gambling guides at BitcoinGG.com to try to add more cryptos to their portfolio. This is especially true when major market indicators such as the RSI (relative strength index) indicate overbought conditions, as in Bitcoin. However, blockchain metrics such as MVRV (market value-to-realized value), Z-score, and Mayer Multiple (a chart-based indicator) indicate that the bull market has plenty of room to run.
Bitcoin’s price has remained in a narrow range over the last week, and it appears that extreme bullish sentiments are beginning to cool off following BTC’s all-time high of $66,900 two weeks ago. Nonetheless, traders are bracing for a strong November, and they anticipate positive cryptocurrency trends as the year comes to a close.
With open interest on Bitcoin’s futures market increasing, some analysts predict a slight pullback. Rising open interest indicates a bearish signal, indicating that the market has more leverage. This increases the likelihood of liquidation events, in which traders are forced to sell their digital assets, causing their prices to fall.
According to Marcus Sotiriou, a digital assets sales trader, the euphoria seen in meme coins like Shiba Inu in the last week could contribute to a short-term leverage flush. All of this is due to an increase in retail traders in the cryptocurrency market.
Seasonal strength in Bitcoin propels the market to a new high.
Bitcoin typically gains 11 percent to 18 percent in the fourth quarter of the year, which explains why some experts predict a bullish trend in cryptocurrency prices for the rest of the year. With its sell-off earlier this year, followed by the volatile September, Bitcoin appears to follow a seasonal trend. The downside, however, was limited as a result of traders entering to buy the dip.
Despite this year’s wild price swings, bitcoin’s long-term price growth remains intact. Various analysts see digital currencies as an early-stage investment as well. According to QCP Capital, a crypto trading company, the industry is rapidly gaining traction among professional investors, with gains from the leading cryptocurrencies helping to push the market to a new record high.
This month, ether reached an all-time high, trading above $4600 for the first time. The price increase coincided with an increase in the use of the Ethereum blockchain network, which supports various online applications. Aside from ether, Polkadot (DOT) reached a new high of $53 in less than 24 hours, rising 18% in less than 24 hours alongside Solana (SOL).
The gains made by meme coins Shiba Inu and Dogecoins last month have been maintained in November, with both holding firm at the start of the month. Some market experts, however, believe that more records will be broken in the last two months of 2021, with a popular price model predicting that bitcoin will be worth six figures by Christmas.
In November, cryptocurrency assets are poised for a bull run.
DOGE has demonstrated meme-coin strength in early November, retaining its October gain. This could be due to the cash flow from SHIB to DOGE. As a result, the battle between these meme coins will be an exciting sideshow in the midst of the November bull run. Furthermore, the continued strength of these coins demonstrates that the investors who support them are still strong.
SHIB has already surpassed DOGE in terms of market capitalization, and the two are still vying for the top spot. Although its price chart hasn’t shown much recently, ADA could be a part of the November bull run. However, its blockchain has been improving and adding new features on a regular basis to encourage widespread adoption. As ADA has been consolidating symmetrically over the last month, this suggests that it may be moving soon.
According to expert technical analysis, Solana will continue to be one of the best players in the altcoin market, with a strong trend. As a result, traders can expect a strong performance in November, with price cards reaching all-time highs. Traders can expect this digital coin to reach $260 in the first two weeks and $300 by the end of November, which means that any retracement supporting the lines would be an excellent opportunity to buy more.
BNB is yet another coin on its way to the top of the bitcoin rally’s second leg. BNB appears to have broken out of its inverse head and shoulders pattern, and its exponential moving average is holding up well. Furthermore, the trading dynamics indicate resistance, implying that we can expect an upward trend this month.