Following the conclusion of the U.S. presidential elections, Bitcoin [BTC] experienced a significant surge, escalating from a low of $66,000 to a new record high of $99,800.
However, post this peak, there was a market correction, leading Bitcoin’s price to retreat to $90,742. The increased volatility in the market has left crypto experts divided, with some anticipating a breakthrough beyond $100,000 while others foreseeing a potential downturn.
Among the optimistic voices is the well-known crypto analyst Ali Martinez, who has proposed a potential rally in December, drawing parallels with the U.S. presidential elections.
Bitcoin’s Past Performance Trends
In his analysis, Martinez highlighted Bitcoin’s historical behavior in December following the U.S. presidential elections.
He pointed out that in the previous two cycles, Bitcoin witnessed substantial surges. For instance, in 2020, Bitcoin surged from $17,570 to $29,300, reflecting a 66.84% increase.
In 2016, Bitcoin escalated from $740 to $981, marking a 32.56% increase.
This historical trend showcases Bitcoin registering price hikes in the month of December post the U.S. presidential elections.
Thus, if historical patterns persist, there is a possibility of Bitcoin making significant gains throughout December. Martinez has suggested that Bitcoin could potentially reach levels between $125,000 to $140,000.
Insights from Market Charts
Despite Bitcoin retracting from its recent all-time high, it remains in a bullish trend. The prevalent market conditions indicate a promising outlook on the price charts.
For instance, the Bitcoin NVT Golden Cross surged from -0.13 to 1.1 recently. An increase in the NVT golden cross signifies long-term confidence in the asset’s growth trajectory.
Investors are now assessing the network’s potential beyond current on-chain activities, projecting growth irrespective of transaction volumes.
Furthermore, the rising MVRV long/short difference indicates growing confidence among long position holders, despite being in a profitable position.
Moreover, Bitcoin’s stock-to-flow ratio has risen from 105 to 494 currently, underscoring the asset’s scarcity and limited supply.
Scarcity is considered a fundamental indicator of Bitcoin’s value, as a reduction in available supply coupled with increased demand usually leads to price appreciation.
In conclusion, Bitcoin seems poised for further gains. The recent market correction appears to be a temporary adjustment before another upward trajectory resumes.