On November 22, during a discussion on X, the cryptocurrency analyst @MortensenBach delivered an optimistic assessment for Bitcoin (BTC), envisioning not only a surge past $70,000 in the upcoming months but also a new record high. This projection is anticipated to fuel interest in the shares of Bitcoin mining companies such as Riot Blockchain and Marathon Digital.
@MortensenBach highlighted Bitcoin’s historical pattern of initiating substantial upward movements following decisive breaches above its 20-month simple moving average (20 SMA) on the monthly chart. As of late November 2023, Bitcoin has demonstrated stability, trading above the 20-period MA.
Examining the monthly chart, the analyst pointed out that October witnessed gains as prices rebounded and increased, influenced by an optimistic market atmosphere supporting crypto valuations. The current sustained upward trend above the dynamic reaction line in the monthly chart leads the analyst to believe that a bullish market is imminent, with expectations of further Bitcoin gains in the coming sessions. The growing bullish momentum, as indicated by the MACD (Moving Average Convergence Divergence), further supports this outlook.
Despite the positive sentiment expressed by the analyst, it is crucial to acknowledge that technical indicators, including MACD and MA, have inherent lag. Consequently, there is no assurance that prices will continue to climb, potentially doubling to surpass $70,000 in 2024 and subsequent months. As of November 23, BTC prices remain steady above $37,000, reflecting a more than twofold increase from the lows observed in November 2022, when prices fell below $16,000.
The future performance of stocks in Bitcoin mining companies, such as Riot Blockchain, after the halving stage, remains uncertain. Nonetheless, historical data indicates a tendency for these stocks to rally in tandem with spot BTC prices.
@MortensenBach’s analysis aligns closely with on-chain insights provided by CryptoQuant, a blockchain analytics platform. According to data, notable investors, or “whales,” are transferring significant amounts of BTC away from exchanges.
This accumulation by prominent players suggests confidence in Bitcoin’s potential for upward movement. This positive sentiment is further supported by ongoing fundamental developments, including regulatory actions and general investor sentiment.
Despite a brief dip below $37,000 following the United States Department of Justice’s ruling on Binance, Bitcoin prices have rebounded, currently trending above $37,000. The market is closely monitoring the Securities and Exchange Commission (SEC) for potential approval of the country’s first spot Bitcoin ETF.