Bitcoin (BTC) is once again leading the charge in the cryptocurrency market, pushing for what could be an upcoming bullish trend.
Currently, Bitcoin is valued at $66k, sparking enthusiasm for potential new all-time highs (ATHs) expected in the final quarter of the year. An interesting metric to consider here is the 2-week Ichimoku Cloud indicator, as it has accurately predicted Bitcoin’s ATHs in previous cycles.
Given the accelerated pace of the current cycle, waiting for moving averages to converge may not be necessary. The leading spans, however, are indicating a potential new peak in November.
Speculation is now growing about whether November will mark a significant milestone for Bitcoin, with institutions and traders closely monitoring this timeline.
Repetition of Covid-19 Crash Pattern
One compelling factor supporting this outlook is the repetition of the 2019 pattern. The Gaussian Channel on the 3-day BTC chart has transitioned to red, a phenomenon witnessed only twice before – during the Covid crash and in Phase 2 of Bitcoin’s previous bull run.
Historically, the emergence of this pattern during the Covid-19 period led to a remarkable surge, propelling Bitcoin to new ATHs. If history repeats itself, Bitcoin could be gearing up for another substantial uptrend, potentially culminating in new highs come November.
Yet, the final outcome will be dictated by market dynamics, and only time will reveal whether this pattern indeed leads to higher price levels.
Impact of Overborrowed USDT
Another factor that could drive Bitcoin’s ascendancy is the effect of the heavily borrowed USDT. Traders have been borrowing significant sums of USDT to invest in Bitcoin. While this initially resulted in a price dip rather than a surge, it caused leveraged traders to incur losses.
This kind of market behavior often precedes a notable rally, particularly as retail investors are purged through liquidations. If the current trend persists, it could set the stage for Bitcoin to skyrocket, possibly reaching new peaks in November.
Blackrock’s Persistent Bitcoin Acquisition
Furthermore, BlackRock’s continuous accumulation of Bitcoin adds to the optimistic outlook. Recently, BlackRock (IBIT) acquired 4,460 BTC amounting to $289 million, increasing its overall holdings to more than 362,000 BTC.
This was followed by another purchase of 1,434 BTC valued at $94.3 million. Subsequently, they procured an additional 5,894 BTC, elevating their total stash to 363,626 BTC, with a value of $23.68 billion.
The substantial and ongoing investment in Bitcoin by BlackRock signifies their anticipation of considerable price appreciation, possibly as early as November.
Considering historical trends, market forces, and institutional backing, Bitcoin’s future seems likely to witness fresh price peaks. The potential for a bullish trend remains robust, and market participants will be vigilant as November draws nearer.
If these elements align harmoniously, Bitcoin may not only break ATH records but could also firmly establish itself in higher price territories for the remainder of the year.