By the end of October, Bitcoin (BTC) surged to $73,000 and increased its market dominance to a record high of 60%. This impressive rally brought it closer to potentially reaching a new all-time high (ATH), with analysts forecasting further growth.
Could $84,000 Be the Next Milestone?
According to Julio Moreno, CryptoQuant’s research lead, once Bitcoin surpasses March’s ATH of $73,700, the next milestone could be $84,000. Moreno mentioned,
“Bitcoin is on the verge of a new ATH. Looking at its valuation, $84,000 could be the next target (the upper band).”
For those unfamiliar, the trader on-chain realized price band is an evaluation measure based on historical BTC price data. This metric utilizes realized price (the average cost basis for short-term BTC traders) with upper and lower bands serving as resistance and support levels.
Given that the current price movement is above the realized price, the immediate target would be the upper band (resistance) at $84,000, assuming BTC remains above $60,000.
The $84,000 target is not unrealistic, with BTC options traders anticipating $80,000 by the end of November, irrespective of the outcome of the upcoming US elections.
Furthermore, the market structure at present indicates potential for further growth, as highlighted by Mathew Siggel, head of digital assets research at VanEck.
Siggel noted that despite BTC nearing a new ATH, the market does not show signs of overheating as observed in March/April.
“Previous BTC peaks have coincided with surging perpetual premiums, a scenario not seen today. Additionally, current spot trading volumes are 50% lower than March/April, suggesting significantly less panic buying from retail investors – a reassuring sign for sustained momentum.”
In essence, the market appears more stable and robust, unlike the excessive excitement witnessed in March during BTC’s ATH peak.
However, there is a minor short-term concern. Notably, there are substantial sell barriers (indicated by yellow lines at $73,200 and $73,800) on Binance’s spot exchange, positioned at the March ATH level. These barriers could potentially hinder progress for a few hours or days.
Nevertheless, prominent investors remain resolute and exhibit strong bullish sentiment. In fact, the rise to $73,000 largely stemmed from significant players accumulating more holdings over the past five days.
This is evident from the increasing Whale to Retail Delta indicator, suggesting that large investors are more optimistic about BTC compared to retail traders at present levels.