A dramatic upcoming week for bitcoins future price, more gains or price correction

Bitcoin's price prediction:

Some Bitcoin investors and miners are realizing profits following this week’s price rally

 

Bitcoin (BTC) saw a significant surge of up to 16% in the first half of this week, reaching a new all-time high of $93,265. Despite a slight decline in the latter half of the week, analysts suggest that the ongoing rally may continue. Reports indicate that the current trading level is still not considered overvalued, with projections aiming above $100K in the coming weeks. However, some Bitcoin holders and miners are taking profits, which could increase selling pressure and potentially pull the price back to $78K.

Several factors suggest that Bitcoin might reach $100K soon. Since the US Presidential election on November 5, Bitcoin has rallied over 35%. According to Crypto Quant's weekly report, Bitcoin is not overvalued at its current price levels. Valuation metrics like the Market Value to Realized Value (MVRV) ratio indicate that Bitcoin remains outside the overvalued territory, suggesting further room for growth.

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However, the market is showing signs of overheating, which could lead to volatile movements. The futures market for Bitcoin, especially the BTC/USDT pair, has become exceptionally active, with a cumulative futures trading volume of $129 billion across major exchanges. This heightened activity often leads to short-term volatility, including minor pullbacks and sharp fluctuations. Investors and traders are advised to exercise caution, avoid rushed speculation, and wait for a period of price stability before making further moves.

Some Bitcoin investors and miners are realizing profits following this week’s price rally. CryptoQuant's data shows that some large Bitcoin miners have reduced their holdings to take profits at the new all-time highs. The Miner Position Index (MPI), which tracks the amount of Bitcoin flowing out of miners’ wallets, spiked to 3.56 this week, marking its yearly high. Historically, similar spikes have led to significant price drops, suggesting that Bitcoin’s price might be approaching a cycle top or ready for a dip.

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From a technical analysis perspective, Bitcoin's recent performance shows potential for both upward and downward movements. After reaching $93,265, Bitcoin declined slightly but recovered to trade around $88,100 on Friday. The Relative Strength Index (RSI) is at 75, above the overbought level of 70, signaling a possible correction. If Bitcoin faces a pullback, it could decline to around $78,807. Conversely, if the bullish momentum continues, Bitcoin could rally to retest the $99,887 level.