Bitcoin FOMO may push the price to $92-100K
Bitcoin hit an all-time high of $67K before starting to come under selling pressure. Now, the coin is adding 1% over 24 hours and is trading around $64.5K. The first cryptocurrency's dominance index halted its growth, as demand for BTC activated a surge in demand for altcoins as well.
The total capitalisation of the crypto market grew by $100bn over the last 24 hours, eclipsing $2.63trn. All Bitcoins are now worth $1.2trn.
A rather interesting development is in RSI on daily charts, which shows the first signs that the rally is losing momentum, hovering on the edge of overbought territory. The Crypto Fear & Greed Index is in the "extreme greed" area at 84.
The bitcoin price was predominantly pushed up by expectations that the approval of a Bitcoin ETF in the US would attract even more capital to the crypto market.
The overall increase in appetite for risk assets (like BTC) among investors over the past month and a half is also worth noting. This is not surprising, as the dollar is under pressure, US stocks are near all-time highs (which means a reversal is coming), and Chinese tech giants are recovering from their drop. Against this backdrop, bitcoin can be seen almost as a modern global risk demand indicator. It is currently enjoying high optimism, having added over 60% to the lows of late September.
Since Thursday morning, we have seen a pullback from its highs, but this is only due to speculators switching back to buying altcoins. Such an environment allows us to expect further strengthening of the first cryptocurrency. So far, we have only seen a price bounce on the highs. It is likely that capital inflows into the new ETF are not yet fully incorporated into the BTC purchase price.
It is worth realising that we have not yet seen a wave of FOMO. The technical analysis suggests that without any significant fundamental headwinds, bitcoin has the potential to grow to the area of 92-100K. Judging by the amplitude of the previous ascent, it may take 3-4 months to reach these targets. However, no one can predict how events will unfold.
Author
Alexander Kuptsikevich, a senior market analyst at FxPro, has been with the company since its foundation. From time to time, he gives commentaries on radio and television. He publishes in major economic and socio-political media.
