Bitcoin has broken out of its March highs, setting a new all-time record on the price charts. Indicators suggest the cryptocurrency could potentially climb as high as $80,000. Bitcoin [BTC] is in the news today after briefly hitting an all-time high (ATH) of over $75,116 on US election night. Despite some depreciation, the cryptocurrency is still trading just below that peak at $74,791 at the time of writing. But that’s only part of the story, as the odds of Donald Trump winning have skyrocketed to over 90% on the Polymarket platform. This supports some of AMBCrypto’s election targets based on the US election results.
However, with the price of BTC now over $70,000, is it too expensive to bid at such a high price? Can latecomers still benefit from it? Let’s try to find the answer by studying key valuation indicators and network statistics.
After Bitcoin hits a new high, what will happen next?
Axel Adler, an analyst at CryptoQuant, recently made a prediction based on Bitcoin’s short-term risk assessment, and he believes that $86,000 may be the next target price. He said:
“When prices reach the $862,000 level, the direction of the bull market will be determined. If prices break through this key point and form a strong bullish trend, we will finally see the situation everyone has been waiting for.”
Looking back at 2020, BTC experienced a parabolic rebound after breaking through the high-risk upper limit. This may be the key price level that we need to pay close attention to and is expected to break through in 2024.
Bitcoin has huge room for growth
Another valuation metric, the MVRV (market value to realized value) ratio, also shows that Bitcoin has great growth potential. MVRV is mainly used to measure whether BTC is underpriced (undervalued) or overpriced (overvalued).
Finally, network growth is a big contributor to Bitcoin’s further rally. Daily active addresses have recovered from their lowest levels since September and have climbed past the critical 1 million mark — a sign of increased demand and interest in BTC.
In the options market, after the Bitcoin price hit the $70,000 level, large market participants made large bets on target prices of $80,000 and $85,000 in November based on recent inflows into Chicago Mercantile Exchange (CME) Bitcoin futures.
However, as noted by prominent options trader Peter Stewart, there is still a $50,000 protective bet (for downside protection) as of the time of this post, which is in the scenario of Kamala Harris winning. He said:
“Notional share of CME Nov 2029 85k calls increased (although at lower premiums), in addition to increased share of Nov 2029 80k calls. On the protection side, $200 million notional share of Nov 2029 70k - 50k put spreads was purchased.”
All in all, indicators and options data suggest that a medium-term target of +$80,000 is possible for Bitcoin. However, any negative macro changes or a Kamala Harris win in the election could weaken or delay these bullish predictions.
