Bitcoin Price Reaches New Peak at $75,000 – Is $86,000 the Next Target?
The latest buzz surrounds Bitcoin [BTC] as it momentarily hit an all-time high (ATH) surpassing $75,116 during the U.S. Election Night. Despite a slight dip, the cryptocurrency is still trading close to that level, currently valued at $74,791 at the time of this report.
In an interesting twist, the probability of a Donald Trump victory spiked to over 90% on Polymarket, confirming forecasts made by CryptoCrypto for the election outcome.
With these initial findings, indications suggest a positive market trend post an official declaration of Trump’s win.
Given BTC’s current value of over $70,000, the question arises – is it too costly to invest now, or can late entrants still profit? Let’s delve into essential valuation metrics and network data for insights.
What Lies Ahead after Bitcoin’s ATH?
According to a recent analysis by CryptoQuant’s Axel Adler, Bitcoin might aim for $86,000 as its next target. Adler noted,
“The fate of the ongoing bull run will be determined at the $86.2K level. A breakthrough above this point with strong bullish momentum could mark the awaited turning point.”
In 2020, Bitcoin experienced a significant surge upon crossing the high-risk upper threshold, establishing a crucial level to monitor and exceed in the future.
Ample Space for Bitcoin Rally
Another important metric, the MVRV (market value to realized value) ratio, indicates substantial growth potential. The MVRV assesses whether BTC is undervalued or overvalued.
Despite hitting a new ATH, BTC appears undervalued based on the MVRV at 2, reminiscent of patterns observed in 2017 and 2020 prior to notable price surges. Typically, an MVRV ratio of 4 (red) suggests overvaluation, while 1 or less signifies undervaluation.
Additionally, Bitcoin’s network growth shows promise for further rally, evident from the increase in daily active addresses, approaching the 1 million milestone, reflecting rising demand and market interest in BTC.
Regarding the Options market, following the breach of the $70,000 mark, considerable bets are being placed on $80,000 and $85,000 targets for November, driven by recent activity seen in the CME BTC Futures market.
However, protective measures for $50,000 still exist, especially in the event of a Kamala Harris victory, as highlighted by notable Options trader Peter Stewart.
“CME has seen notable activity in Nov29 85k Calls and Nov29 80k Calls. Conversely, protective positions, amounting to $200 million notional, in Nov29 70k-50k Put spreads were initiated.”
In conclusion, various metrics and Options data suggest a likelihood of achieving the medium-term target of over $80,000. Yet, adverse macroeconomic updates or a Kamala Harris win could hinder or postpone these optimistic forecasts.