The Bitcoin is now up more than 50% since the start of October, overtaking the market value of tech giants like Facebook and Tesla.
Bitcoin has had an amazing performance since the start of the October. The main cryptocurrency has seen its price rise by more than 30% over the past three weeks. Yesterday, the “gold” of cryptocurrencies reached another milestone after setting a new all-time high at $67k.
The new record came amid the highly anticipated first Bitcoin-linked ETF. It began trading on the New York Stock Exchange on Tuesday with a BITO ticker. And per experts and analysts opinion, the expectations that even higher levels will be reached in the coming weeks and months. If Bitcoin can build on its current momentum, then it could touch the $70k level over the next few days. To reach the predicted price of $100k as many analysts believe before the end of the year, BTC’s price would need to rise by more than 40% from its current price to attain that level.
The obvious fear is the large buying ahead of the launch has left investors over-exposed at the top-end of the historical range. Furthermore, the Relative Strength Index of 77.20 signals the price is overbought and vulnerable to a correction. Nonetheless, the Bitcoin price may extend higher in the near term, considering the bullish momentum. However, I expect volatility, taking into account that BTC is up 50% already this month. Furthermore, the bullish view relies on BTC maintaining the psychological $60k level. If the price drops below the significant figure, it could be the catalyst for liquidation. On that basis, the outlook is cautiously optimistic above $60k and undecided below it.
If you are wondering what to do now that Bitcoin has reached a new high: do nothing. Long-term investors should hang onto their coins, and don’t let the hype of these daily swings influence your investment decisions.
