As expected, the Bitcoin and cryptocurrency craze will happen hours after the election of Republican Donald Trump. Cryptocurrencies have become an election issue, with Trump presenting a friendlier political tone than his rival Kamala Harris, who acknowledged Trump’s victory yesterday. Bitcoin rose 8% during the first hours of trading, Up to $75,000, Better than March record. This is just the beginning of Bitcoin’s price rise for many market analysts.
According to Ki Young Joo, CEO of CryptoQuant, the price of Bitcoin could still rise in the short term, with a rise of up to 40%. Based on Bitcoin’s price range today, it is now part of the 10 largest financial assets by market capitalization. However, Yong Joo warns holders to become realistic in the short term and recommends selling gradually while relieving “maximum pain.”
Bitcoin hits a new ATH. Source: Bitstamp
The cryptocurrency market is experiencing a “softening period”, preparing for higher prices
Now that the election fever has subsided, market analysts and observers are focusing on the cyclical nature of Bitcoin and cryptocurrencies. According to Ki Young Joo, the behavior of Bitcoin holders often coincides with the cyclical nature of the asset. New owners often endure price collapses during down months, only to discover those assets change hands two years after the “maximum pain” subsides, he said.
New investors often hold $ Bitcoin Through bear markets, and constant losses.
After about two years, hands change when the pain subsides. That time is now.
It could go up +30-40% from here, but not like the +368% we saw from $16k. It’s time to think about selling off, not buying out, imo. pic.twitter.com/hXRT6YBsxS
– Ki Young Ju (@ki_young_ju) November 6, 2024
In a post on Twitter/X, Joe added that “changing hands and pain relief” for assets is happening now. From here, the CEO expects the price to rise by 30 or even 40%. However, he warned holders that the market today is different from when Bitcoin jumped 368% and was trading at $16,000. For Joe, the best strategy is to sell the asset gradually and never adopt a blanket buy strategy.
BTCUSD trading at $78,077 on the daily chart: TradingView.com
Bitcoin technicians are telling a bullish story in the short term
Cryptocurrency holders and investors can also use Bitcoin Technical data For more ideas. Based on TradingView data, BTC price is approaching the upper border of the Bollinger Band indicator, indicating upward momentum. But when these ranges expand, equity and position holders can expect higher volatility.
Also, the asset’s Relative Strength Index (RSI) is 63, indicating bullish momentum. Bitcoin’s RSI fell to 56% three days before the US election, representing a balanced market. A neutral RSI score means that the price action is steady, with no significant decline, increase, or period of consolidation. But two days after the election, it is now at 63, indicating bullish sentiment but not in overbought territory yet.
Staking platforms benefit from positive price action
In addition to holders and investors, staking platforms benefit from Bitcoin’s recent price movement. For example, Solv Protocol, a leading Bitcoin signature platform, has achieved over $2 billion in total value locked (TVL). DeFiLlama reports that nearly 30,000 bitcoins are staked on the Solv protocol, an increase from the 16,340 tokens listed in mid-October. The Solv Protocol’s increasing activities across the blockchain coincide with Bitcoin’s recent price movement.
Among the products available on Solv Protocol, SolvBTC is arguably the most popular, with a value of approximately $1.11 billion. The increase in activities at Solv Protocol highlights the growing importance of betting in generating more returns in the face of erratic price movement.
Featured image from DALL-E, chart from TradingView
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