With this month, Bitcoin (BTC) is expected to close at its highest level since December 2020. Analysts claimed that even though prices are almost at all-time highs, the bull market is still far from done.
With a 44% gain in February, the largest cryptocurrency asset by market capitalization broke between $50,000 and $60,000 for the first time in years, reaching a high of $64,000 on Wednesday.
The surge came after a sell-the-news decline below $40,000 in response to the U.S. launch of spot bitcoin exchange-traded funds (ETF) towards the end of January.
There’s a chance that Bitcoin will close the month at its highest price ever. In order to achieve this, it must rise over $61,357 by midnight UTC on October 20, 2021, which is the closing price close to the peak of the last market cycle. Bitcoin was trading for about $61,200 at the time of publication.
Almost 40% was gained by the CoinDesk 20 Index (CD20) during the widespread cryptocurrency rise in February.
The top-performing CD20 tokens were viral meme dogecoin (DOGE), decentralized data storage network Filecoin’s FIL, and decentralized exchange Uniswap’s governance token (UNI), which outperformed BTC’s increases.
While bitcoin’s price is hovering near its all-time high, some analysts still see further upside.
“We haven’t even begun to reach the heights this is likely to go.”
Alex Thorn, Head of Firmwide research at Galaxy
He argued that the U.S. spot bitcoin ETFs are a “game changer,” providing steady – and recently accelerating – demand for BTC. Meanwhile, some 75% of bitcoin’s supply is owned by long-term holders, who have been unwilling to sell so far at recent price levels.
Retail interest in cryptocurrency and the volume of on-chain transactions on the Bitcoin network are still considerably below what they were during previous peaks, according to IntoTheBlock experts.
The present bitcoin rise, according to crypto analytics firm Swissblock, is “just the start of what is to come.”
“Sustained buying pressure and strong bullish signals from both oscillators and moving averages suggest that BTC is poised for continued upward momentum.”
Swissblock analysts
However, they urged caution against rushing into the market just now.
“Instead of chasing the market at these elevated levels, a more prudent approach may be to wait for short-term pullbacks for buying opportunities,” they wrote.
