Bitcoin (BTC) has recently surged to an all time high of $93,477 as of 13th November 2024, a 21.4% from its last record from 7th November of 2024. This is the most Northward move the cryptocurrency industry has ever seen in such a short span of time, a remarkable chart behavior that will go down in the history books putting 2024 on that Year of Fame in the crypto industry.
But Bitcoin was not the only cryptocurrency with moves like this, Dogecoin, a cryptocurrency which Elon Musk has always been a fan of, and an Investor himself, jumped at 152% as well.
Significant Prices levels in History:
It is not to be forgotten that “happy moments” like this have occurred in different times since Bitcoin coin tokens were made available in 2009. Bitcoin has reached several significant all-time highs throughout its history.
- December 17, 2017: $19,000, Bitcoin’s first significant rise, spiked and all-time high. However, this upward momentum quickly reversed, and Bitcoin entered one of the longest bear markets in its history all throughout 2018, ultimately closing the year around $3,709, reflecting a dramatic decline of about 73% for the year.
- April 14, 2021: $64,895, as Bitcoin gained traction with retail and institutional investors.
- November 10, 2021: $69,000, amid increased institutional interest in Bitcoin and the Coinbase public launch led to another spike in its chart.
- November 6, 2024: $75,361, driven by the U.S. presidential election results.
- November 7, 2024: $76,000, following favorable political developments and ETF approvals.
Current Market Status
As of November 13, Bitcoin had broken the ceiling again with an all-time high of $93,409, this shows a substantial increase of about 47% over the past one week. The growth has pushed the total cryptocurrency market cap past $3 trillion. This points to a renewed investor confidence and interest in digital assets.
Factors Driving the Surge
- Political Influence:
Political decisions made on some of the biggest political stages in the world always play a role in the market behavior and the U.S elections was no different in Bitcoin's bullish behavior.
The recent election victory of Donald Trump has been viewed as favorable by many in the crypto community. Experts believe that Trump’s being pro-crypto during the campaign season, appearing at a Bitcoin conference in July of 2014 held in Nashville, he made statements like promising to make America
“the capital of crypto currency of the planet and Bitcoin superpower of the world”
He also accepted cryptocurrency from some big names in the crypto space like Kresus Labs founder Trevor Traina, Brian Murray, a partner at Craft Ventures and Mike Belshe the CEO of digital asset security company BitGo.
These are all indicators that show his will to soften the regulatory landscape in favor of cryptocurrencies, particularly with discussions around establishing a federal strategic Bitcoin reserve.
- Institutional Investment:
MicroStrategy a business intelligence (BI) platform recently on November 11th acquired $2 billion worth of Bitcoin, about 27,200 Bitcoin. This move was the largest since 2020 and fueled the confidence in the market and raised hopes for a bright future for Bitcoin token holders.
This strategic move has already generated significant gains, reinforcing the dwindling trust levels among retail and institutional investors.
- Market Recovery and Halving Effects:
Not to be left out or forgotten is the impact of the Bitcoin halving event that happened in April of 2024. This has created a drop in supply, and reduced the number of block rewards which limits new supplies. Experts and analysts believe this event of scarcity is a driving factor for the higher price, as demand continues to outgrow the limited token supply.
Technical Analysis
The movement of the price of Bitcoin has broken key resistance levels, and now entering a "price discovery" phase. This brings Analysts like Peter Brandt to make unbelievable projections that BTC could reach $125,000 by the end of the year of 2024 based on historical patterns and current market behavior. Doubts surrounding this prediction at the time it was made but no doubt that's the present charts sho signs of this possibility.
Also chart patterns such as the cup and handle formation suggest further upward momentum is possible, with key support levels identified around $70,000.
Potential Risks and Corrections
Despite the bullish trend, analysts strongly warn about potential short-term corrections. The market volatility remains a concern and should not be negated, especially given the rapid price increases observed recently. A decline below critical support levels could trigger sell-offs and lead to price retracements. Some experts also predict a long bearish market if the market begins to dip.
Conclusion
The current surge in Bitcoin's price presents both opportunities and challenges for investors. While the bullish sentiment driven by political developments and institutional investments is strong, caution is warranted as historical trends indicate that corrections are likely to follow significant rallies. Monitoring key price levels will be essential for navigating this volatile landscape as Bitcoin continues its ascent toward new heights.
Citations:
[1] Bitcoin Price Levels to Watch After Cryptocurrency Sets New Record High https://www.investopedia.com/bitcoin-price-levels-to-watch-after-cryptocurrency-sets-new-record-high-8741252
[2] Bitcoin Price To Hit $125,000 This Year, Supported by Bayesian Analysis https://zycrypto.com/bitcoin-price-to-hit-125000-this-year-supported-by-bayesian-analysis/
[3] Bitcoin Price Analysis: BTC Surges to US$81k, Targets US$93k and Beyond https://industrywired.com/bitcoin-price-analysis-btc-surges-to-us81k-targets-us93k-and-beyond/
[4] Experts Analyze Bitcoin Price Surge After Halving Events - cointurk news https://en.coin-turk.com/experts-analyze-bitcoin-price-surge-after-halving-events/
[5] Bitcoin Soars Amid a Perfect Storm of Global Change https://crypto.news/btc-soars-amid-a-perfect-storm-of-global-change/
[6] Bitcoin: What factors are pushing Bitcoin to a new all-time high? | Explained https://www.thehindu.com/sci-tech/technology/what-factors-pushing-bitcoin-to-new-all-time-high-explained/article67920313.ece
[7] Trump’s Crypto Moves Drive Bitcoin Surge Amid Bullish Market Shift https://fintechmagazine.com/articles/how-impending-trump-presidency-is-spurring-crypto-bull-run
[8] Bitcoin Price Forecast: Why BTC could decline in the upcoming days? https://www.fxstreet.com/cryptocurrencies/news/bitcoin-price-forecast-chances-of-pullback-increase-as-miner-selling-ramps-up-202411131301
[9] Bitcoin Price Surge Supports Solana and Other Altcoins https://en.coin-turk.com/bitcoin-price-surge-supports-solana-and-other-altcoins/
[10] Bitcoin's Price Run Continues as it Rises Above $93,000 https://www.investopedia.com/bitcoins-price-run-continues-above-usd93-000-8744424
[11] Bitcoin Price History: What Was Bitcoin's Highest Price? - BitDegree https://www.bitdegree.org/crypto/tutorials/what-was-bitcoins-highest-price
