Even though the Bitcoin price fell below 70 thousand dollars, it was seen that existing investors maintained their faith.
It was seen that the price of Bitcoin (BTC) decreased to 67 thousand dollars due to the impact of the US presidential elections. The leading cryptocurrency faces a potential pullback as Kamala Harris boosts her chances of winning. It has become a matter of curiosity whether Bitcoin supporter Donald Trump will win the elections.
BTC, which tried to rise above $70 thousand several times, could not break the potential resistance levels. While the upward momentum in BTC has disappeared, investors’ hopes for the bull run have not disappeared.
AMBCrypto penned the latest outlook on Bitcoin. In the analysis, it was emphasized that new investors should be involved for a rising market.
Is it too early for Bitcoin to rise?
CryptoQuant analyst CoinLupin commented on Bitcoin’s MVRV (Market Value to Realized Value) cycle. The analyst used the following statements:
“As we approach key events in November, the MVRV ratio offers a traditional analytical approach to evaluating Bitcoin price.”
The MVRV ratio of 2 reflects the on-chain value estimate of Bitcoin’s market cap. MVRV remains above the annual average. This ratio indicates a potential bull cycle.
CoinLupin stated that many indicators are used to better understand Bitcoin’s cycles. According to the analyst, tools such as the 365-day Bollinger Band and the four-year average also confirm the potential rise.
The analyst stated that for a full bull cycle to occur, the MVRV ratio must lie between 3 and 3.6. According to the analyst, if the conditions are met, BTC may exceed 95 thousand dollars.
Bitcoin needs new investors
According to data from Glassnode, the number of active addresses in Bitcoin remains positive. The data in question indicates a stable growth since August. Despite the recent price drops in BTC, the number of active addresses has remained between 870 thousand and 546 thousand.
AMBCrypto noted the following;
“The stability of active addresses reflects interest in BTC. Still, this data suggests that participation from new investors may be limited. Although existing investors maintained their faith, new investors did not flock to the market. BTC may need new investors for a more solid rise.“
According to IntoTheBlock, Bitcoin whale transactions peaked at 24,070 on October 29. On November 3, it was observed that whale transactions decreased to 13 thousand 300. The decline in question shows that whales are not in a hurry to accumulate savings.
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