Bitcoin cleared its March high, pushing it towards a new ATH on the charts
Metrics suggested the crypto could potentially go as high as $80k
Bitcoin [BTC] is in the news today after it briefly hit a new all-time high (ATH) of over $75,116 on Election Night in the United States. Despite some depreciation, at the time of writing, the cryptocurrency was still trading just under the aforementioned level, with a value of $74,791.
That’s not all though as the odds of a likely Donald Trump win surged above 90% on Polymarket. This confirmed some of the election targets AMBCrypto projected based on the U.S election’s outcome.
Source: Polymarket
On the back of these preliminary results, the trend seemed to point to a likely bullish outcome for the markets, should Trump be declared the official winner.
However, with BTC above $70k now, is it too expensive to bid at these levels, or can latecomers still benefit? Let’s explore key valuation metrics and network statistics for some answers.
What’s next after BTC’s new ATH?
Based on Bitcoin’s short-term risk evaluation, CryptoQuant analyst Axel Adler recently projected that $86k could be the next target. He said,
“At the $86.2K level, the fate of the bull run will be decided. If the price breaks above this point and forms a strong bullish momentum, we’ll finally see what everyone has been waiting for.”
Source: CryptoQuant
In 2020, BTC saw a parabolic rally when it broke above the high-risk upper boundary. This could be the key level to watch and break in 2024.
Huge room for an extra BTC rally
Another valuation metric, the MVRV (market value to realized value) ratio, also signalled a massive growth potential. MVRV tracks whether BTC is cheap (undervalued) or too expensive (overvalued).
Despite its new ATH, BTC was still cheap as per the MVRV, standing at 2. This seemed to mirror the 2017/2020 patterns, just before its explosive runs. In most cases, an MVRV ratio of 4 (red) is considered overheated or overvalued, while 1 and below is deemed cheap.
Source: CryptoQuant
Read Bitcoin [BTC] Price Prediction 2024-2025
Finally, the network growth also looked great for Bitcoin’s extra rally. The daily active addresses reversed from its lows since September, with the same climbing towards the 1 million mark – A sign of greater demand and market interest for BTC.
Source: CryptoQuant
On the Options market, after the $70k-level, which has already been hit, large players placed big bets on $80k and $85k targets for November based on recent inflows on CME BTC Futures.
At press time though, there were still protective bets (downside protection) for $50k, probably if Kamala wins, as renowned Options trader Peter Stewart noted. He said,
“CME has added a similar notional clip (but lower premium) in Nov29 85k Calls, and also a clip of Nov29 80k Calls too. On the protective side, $200m notional of Nov29 70k-50k Put spreads were bought.”
Source: CME Futures
In conclusion, metrics and Options data indicated that the +$80K medium-term target might be probable. However, any negative macro environment updates, or a Kamala Harris win could dent or delay these bullish projections.
