Bitrabo Editorial
As anticipated, the excitement around Bitcoin and cryptocurrency intensified following the victory of Republican candidate Donald Trump in the elections. Crypto has emerged as a significant topic this election cycle, with Trump presenting a more favourable approach compared to his opponent, Kamala Harris, who acknowledged Trump’s win yesterday. Bitcoin experienced an impressive 8% increase soon after trading commenced, surpassing $75,000, outperforming its previous peak from March. Many market analysts believe this marks the beginning of a potential surge in Bitcoin’s price.
According to Ki Young Ju, CEO of CryptoQuant, Bitcoin could see further short-term gains, potentially rising by as much as 40%. With its current position, Bitcoin ranks among the top 10 largest financial assets by market capitalization. However, Young Ju advises investors to approach the short term with caution and suggests a strategy of gradual selling as the market stabilizes from recent hardships.
Crypto Market Experiences a Recovery Phase, Paving the Way for Price Gains
As the election excitement fades, market analysts turn their attention to the cyclical patterns of Bitcoin and other cryptocurrencies. Ki Young Ju observes that the behavior of BTC holders often aligns with these cycles, noting that new investors typically endure losses during bearish phases before seeing a shift in ownership about two years after the market stabilizes.
New investors often hold $BTC through bear markets, enduring losses.
After about two years, it changes hands when pain eases. That time is now.
It could go up +30-40% from here, but not like the +368% we saw from $16K. Time to consider gradual selling, not all-in buying, imo. pic.twitter.com/hXRT6YBsxS
— Ki Young Ju (@ki_young_ju) November 6, 2024
Ki Young Ju tweeted that now is the time for a transition of assets and for the alleviation of previous market pain. He anticipates a possible increase in Bitcoin’s price by 30% to 40% but cautions that current market conditions differ from the previous massive 368% surge when Bitcoin was valued at $16k. He emphasizes a gradual selling approach instead of committing wholly to buying strategies.
Positive Technical Indicators for Bitcoin in the Short Term
Investors can analyze Bitcoin’s technical indicators for further insights. Based on TradingView data, Bitcoin’s price is nearing the upper Bollinger Band, signaling a potential bullish trend. However, as these bands widen, it can lead to increased market volatility.
Additionally, Bitcoin’s Relative Strength Index (RSI) is currently at 63, indicating positive upward movement. Just days before the elections, the RSI was at 56%, which reflected a balanced market. The rise to 63 post-elections suggests a positive sentiment without reaching overbought territory.
Staking Platforms Gain from Price Increases
The recent uptick in Bitcoin’s price is also benefiting staking platforms. For instance, Solv Protocol, a significant BTC staking platform, surpassed $2 billion in Total Value Locked (TVL). As reported by DeFiLlama, approximately 30,000 Bitcoins are currently staked on Solv Protocol, a surge from 16,340 tokens in mid-October. This rise in staking activity aligns with Bitcoin’s price movement.
Among the offerings from Solv Protocol, SolvBTC stands out, securing nearly $1.11 billion in value. The increase in activity highlights the role of staking as a means to generate yield amidst fluctuating prices.
Featured image from DALL-E, chart from TradingView