As we await the results of the US election, George McDonaugh, Co-Founder and Managing Director of digital asset investment company KR1 plc comments on how when it comes to the price of Bitcoin, investors have to look beyond politics.
“The recent surge in the price of Bitcoin is actually part of a sustained rally since the ‘covid capitulation’ event back in March. Since then we’ve seen nothing but bullish signals appear one after another. Firstly, we’ve seen 4 straight ‘higher lows’ play out (if you split the time since March into consecutive 60 day cycles) which means there is a clear uptrend unfolding. Secondly, Bitcoin has spent more time above the 10k USD mark than ever before in its history. Clinging on above this price point over the months of July, August and September was a huge moment and effectively led on to my third major signal, the monthly close above 13.7k USD at the end of October, which is the second highest monthly close in Bitcoin’s history. This close sets a president and shows huge buying strength in the market. The price also reached an Intraday trading high of 14,077, which was the first time BTC had reached above the $14,000 level since 15 January 2018.
“Lastly, to bring it right up to date, we’re currently seeing a very ‘right translated’ 60 day trading cycle. Which means we’ve spent a lot more time than normal ‘going up’ and there’s not much time left in the cycle to ‘go down’. We’re currently on day 57 since the last 60 day cycle bottom formed. If the market strings a range of consecutive right translated cycles together, this is what forms an uptrend. The sustained Bitcoin price this late on in the cycle would therefore point to yet further strength coming to the market in the near future, as it’s possible we will only form a ‘shallow low’ before embarking on the next 60 day cycle. If this ends up being the case, late December / early January could take us close to Bitcoin’s all-time highs and after that, it’s literally uncharted territory.
“As ever however, that would be too easy for Bitcoin, which is a market that loves nothing more than to surprise everyone. We’re now clearly in a bull market and next year has huge potential, but watch out for those 30% declines that come seemingly out of nowhere. There were five such declines on the way up to 20,000 in 2016/17, so expect similar this time around. Money is now software and in what world would that be a smooth transition? All we can do is continue to hold on for dear life as the strong ebb and flow of this unique technology and corresponding market, continues on its epic journey towards mainstream adoption.”