Gold and the S&P500 have surpassed Bitcoin in reaching new highs, but experts in the market are predicting that BTC is on the verge of a breakthrough. The recent sale of a large amount of Bitcoin by the German government and the announcement of repayment by MT Got are the main factors holding back the growth of BTC.
Bitcoin is approaching a significant resistance level of $70,000 as it continues its steady upward trend, resulting in an 8% increase over the past 30 days. Currently, the asset is trading at $69,000, with a daily trading volume that has surged by 70%, bringing the Year-To-Date return to 56%.
Despite its impressive performance, Bitcoin is still lagging behind gold, which is experiencing its best performance since 2010 and is currently trading at an all-time high price of $2,718. The S&P500 has also seen a 23% surge this year, reaching a record price of over $5,870 on October 17.
The reason for Bitcoin’s inability to break its previous record high in recent months is being attributed to its rapid rise in value, reaching a peak of $73,700. Analysts believe that this rapid increase has led to consistent liquidations, especially due to the German government’s decision to sell 88% of the 50,000 BTC seized from movie piracy operators. Currently, the German government’s wallet holds less than 5,000 BTC, excluding the 9,000 BTC that was later returned. Additionally, the trustee for Mt. Gox has also started repaying creditors in Bitcoin and Bitcoin Cash, which has caused a mass sell-off and hindered BTC’s growth.
Further analysis of Bitcoin’s performance reveals that its availability for trading 24/7 makes it more susceptible to volatility, resulting in liquidations and significant pressure that brings its value below its fair price. The chart provided by analysts shows the level of Bitcoin distribution during the reviewed period, indicated by the deep red coloring.
Despite the recent dip in Bitcoin’s performance, it has presented an opportunity for both large and small investors to accumulate the asset aggressively. Data from Santiment confirms an increase in the number of wallets holding between 100 BTC and 1,000 BTC during this period.
Analysts believe that Bitcoin still has the potential to achieve record-breaking performance, especially with reports of potential rate cuts by Western central banks and the possibility of US presidential candidate Donald Trump supporting cryptocurrencies. Furthermore, Japan’s inflation rate being at its lowest level since April could also act as a catalyst to propel Bitcoin to new heights.
In conclusion, while Bitcoin has been outpaced by gold and the S&P500 in terms of reaching new highs, there are several factors that suggest BTC has the potential to surpass its previous record high.
