Earlier in the year, analysts had speculated that Bitcoin will touch $100K before the end of the year, but these hopes died down after nearly a third of the coin’s value was wiped away during the May bears. However, the current uptrend has reignited this hope, with many believing that new highs will be created.
Will BTC Break Out in Q4?
Bitcoin’s market cap stands at around $1.2 trillion, with its market dominance coming to around 45%. Data from CoinGecko shows that Bitcoin tested the $64K highs on October 19, and despite failing to break to record highs, all signs point towards these new levels being created in the next few days.
One of the factors attributed to this bullish rally is the approval of an exchange-traded fund. The ProShares Bitcoin Strategy ETF recorded 41 billion worth of trades in just the single day of trading. The debut of this ETF in the US also corresponded with BTC’s rally to $64K.
Another ETF is expected to be approved within the week, which could mean that even more bullish gains are going to come. As such, Bitcoin could be heading towards an even bigger breakout, and the $70K levels could be tested soon.
These funds are causing an influx of institutional investors who are buying Bitcoin. Unlike short-term retail traders, institutional investors are less likely to sell their holdings, which could be a major bullish signal for Bitcoin.
The other catalyst for this bullish rally is that China is no longer a contributing factor towards a dip in prices. The country banned crypto mining and trading earlier this year, causing a major dip in prices. However, when this ban was refreshed last month, it did not affect the market, and instead, Bitcoin gained by around 25%.
Market is Not in a Bubble
The crypto market is not yet in a bubble according to a CryptoQuant analyst on Twitter. This analyst has stated that the lack of retail players in the market shows that Bitcoin’s prices are not in the bubble they were during the April and May peaks.
According to this analyst, short term holders account for just 17% of the total Bitcoin supply, showing that the majority of holdings lie with long-term holders. This could be a factor showing that the coin will break out to new heights once these players come in.