Bitcoin Price Forecast: BTC pops above $82,000, setting new all-time high

Source Fxstreet

Bitcoin price today: $82,000

  • Bitcoin price reaches a new all-time high of $82,471 on Monday, following a rally of almost 17% the previous week.
  • US spot Bitcoin ETFs experienced inflows of $1.61 billion last week following Trump’s victory and the Fed interest-rate cut.
  • Historically, Bitcoin has delivered strong returns for traders in November, with an average gain of 44.24%, marking the highest monthly average of the year.
  • The technical outlook on the weekly chart suggests a bullish rally ahead, while the daily chart indicates a potential short-term pullback.

Bitcoin (BTC) trades around $82,000 on Monday, having reached a new all-time high (ATH) of $82,471 earlier in the day and extending last week’s 17% rally. Optimism in crypto markets is widespread after the victory of crypto-friendly candidate Donald Trump in the US presidential election. While the long-term outlook for BTC and other altcoins looks positive, chances of a short-term correction are also increasing following seven consecutive daily sessions of gains. 

The rally was further boosted by over $1.6 billion in US spot Bitcoin Exchange Traded Funds (ETFs) inflows and a Federal Reserve interest rate cut. Moreover, historically, data suggest the continuation of the ongoing rally as Bitcoin has traditionally delivered strong returns in November. From a technical point of view, while the weekly chart suggests a continued bullish rally, the daily chart points to a short-term pullback.

Institutional demand supports BTC’s bullish outlook

Institutional flows continued accumulating Bitcoin last week, with more inflow coming after Trump’s victory. According to Coinglass ETF data, US spot Bitcoin ETFs experienced a total net inflow of $1.61 billion last week. Thursday marked the highest single-day inflow ($1.36 billion) since the ETFs’ launch in January. 

Total Bitcoin Spot ETF Net Inflow chart. Source: Coinglass

Total Bitcoin Spot ETF Net Inflow chart. Source: Coinglass

Total Bitcoin Spot ETF Net Inflow chart. Source: Coinglass

Bitcoin surges following Trump’s victory, Fed rate cut

Bitcoin surged almost 17% last week, hitting a new high of $81,500 on Sunday. The rally was largely fueled by  Donald Trump’s decisive victory in the US presidential election. His pro-Bitcoin stance and proposed policies, such as eliminating taxes on Bitcoin transactions and creating a strategic reserve, have sparked bullish sentiment in the crypto community.

Additionally, on Thursday, the Fed reduced interest rates by 25 basis points (bps), further fueling the ongoing rally in Bitcoin and the broader crypto market. Historically, cryptocurrencies have responded positively to low interest-rate environments, as lower borrowing costs boost investors’ purchasing power, encouraging them to invest in risky assets like Bitcoin rather than keeping funds in banks for higher returns.

Bitcoin has the highest average monthly returns in November

Coinglass’s Historical Bitcoin Monthly Return (%) data shows how Bitcoin has performed in different monthly percentages. As shown in the graph below, Bitcoin generally yielded positive returns for traders in November, with an average of 44.24%, by far the highest monthly average out of all 12 months.

Bitcoin  Monthly Return (%) chart. Source: Coinglass

Bitcoin  Monthly Return (%) chart. Source: Coinglass

Looking at the broader Q4, the average gain is 84%, well above the current  28.5% registered so far this quarter.

Bitcoin Quarterly returns (%) chart. Source: Coinglass

Bitcoin Quarterly returns (%) chart. Source: Coinglass

Bitcoin Price Forecast: Long-term bullish, short-term bearish

The weekly chart shows that BTC surged 16.86% last week. As of Monday, it was trading at around $82,000, reaching a new all-time high (ATH) of $82,471.

If BTC maintains its upward momentum, it could extend the rally to retest the 141.4% Fibonacci extension level at $84,034 (drawn from March’s high of $73,777 to August’s low of $49,000). A successful weekly close above this level would trigger an additional rally of 5.8%, potentially reaching a projected new all-time high of $89,089 at the 161.8% Fibonacci extension level.

The Relative Strength Index (RSI) on the weekly chart is currently at 69, nearing the overbought level of 70 and pointing upwards, indicating that bullish momentum is strong. 

However, if the RSI enters the overbought territory and then moves back down, it could signal a potential sell-off or a pullback. Another possibility is the rally could continue, with the RSI staying above the overbought level and maintaining the bullish trend.

BTC/USDT weekly chart

BTC/USDT weekly chart

The daily chart suggests the chances of a pullback are high. The chart indicates seven consecutive green candlesticks since November 5, suggesting the rally may be overstretched. Additionally, the RSI stands at 79, well above its overbought level of 70, signaling increasing risk. Traders should exercise caution when adding to their long positions, as a move out of the overbought territory by the RSI could provide a clear sign of a pullback.

If BTC faces a corrective pullback, it could decline 4% from its current position and retest its $78,777 support level. 

BTC/USDT daily chart 

BTC/USDT daily chart 

However, if the bulls continue the upward momentum, the rally would extend to retest its 161.8% Fibonacci extension level (drawn from July’s high of $70,079 to August’s low of $49,072) at $83,062.

Bitcoin, altcoins, stablecoins FAQs

Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.

Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.

Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.

Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Understanding the first crypto market crash of 2024 and what to expect nextThe 365-day MVRV ratio suggests that this crash may be just the beginning. If the ETF is rejected before the second quarter of 2024, it could trigger a sharp correction.
Author  FXStreet
Jan 04, Thu
The 365-day MVRV ratio suggests that this crash may be just the beginning. If the ETF is rejected before the second quarter of 2024, it could trigger a sharp correction.
placeholder
Natural Gas sinks to pivotal level as China’s demand slumpsNatural Gas price (XNG/USD) edges lower and sinks to $2.56 on Monday, extending its losing streak for the fifth day in a row. The move comes on the back of China cutting its Liquified Natural Gas (LNG) imports after prices rose above $3.0 in June. It
Author  FXStreet
Jul 01, Mon
Natural Gas price (XNG/USD) edges lower and sinks to $2.56 on Monday, extending its losing streak for the fifth day in a row. The move comes on the back of China cutting its Liquified Natural Gas (LNG) imports after prices rose above $3.0 in June. It
placeholder
Crypto Exchanges Witness Historic Institutional Surge: Binance Takes the Lead in 2024The cryptocurrency exchange market appears to have undergone a transformative shift in 2024, driven largely by a significant uptick in institutional activity. According to insights shared by CryptoQuant on its QuickTake platform, major exchanges are witnessing unprecedented growth in Bitcoin and USDT deposits. This trend highlights the increasing confidence of institutional investors in digital assets, […]
Author  Bitcoinist
Dec 04, Wed
The cryptocurrency exchange market appears to have undergone a transformative shift in 2024, driven largely by a significant uptick in institutional activity. According to insights shared by CryptoQuant on its QuickTake platform, major exchanges are witnessing unprecedented growth in Bitcoin and USDT deposits. This trend highlights the increasing confidence of institutional investors in digital assets, […]
placeholder
Market Expert: Not Long On XRP? You’re ‘Disrespecting’ YourselfAnalysts continue to believe in the potential price surge of XRP, predicting that it is still feasible that the crypto will hit the $3 mark.
Author  NewsBTC
Dec 06, Fri
Analysts continue to believe in the potential price surge of XRP, predicting that it is still feasible that the crypto will hit the $3 mark.
placeholder
Nearly $3 Billion in Bitcoin and Ethereum Options Expire Today Amid Mixed Market SentimentToday, approximately $3 billion worth of Bitcoin (BTC) and Ethereum (ETH) options are set to expire, creating significant anticipation in the crypto market.Expiring crypto options often leads to notab
Author  Beincrypto
Dec 06, Fri
Today, approximately $3 billion worth of Bitcoin (BTC) and Ethereum (ETH) options are set to expire, creating significant anticipation in the crypto market.Expiring crypto options often leads to notab
Related Instrument
goTop
quote