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A fresh record for BTC price action on U.S. election day means that $100,000 could now form a price target, historical data suggests.
Bitcoin (BTC) has officially beaten a new record as BTC/USD trades above $10,000 for 100 days, and major gains should come next.
As voting in the United States’ presidential election ended on Nov. 3, Bitcoin saw a landmark moment of its own — 100 days straight trading in five figures.
The achievement is not just impressive as a record for $10,000-plus prices. According to previous data, once Bitcoin trades above these significant price levels for 100 days, BTC/USD swiftly increases by an order of magnitude.
As Cointelegraph reported last week, the length of time has differed depending on the price level involved, but the result has been the same — major gains.
Adding strength to the argument of Bitcoin staying higher going forward, quantitative analyst PlanB noted that the largest cryptocurrency’s untested 200-week moving average has now crossed $7,000 for the first time.
Should historical patterns repeat themselves, Bitcoin could now gain more relative to the 200 WMA the closer it gets to its next block subsidy halving in 2024.
Bitcoin price versus its 200-week moving average. Source: PlanB/Twitter
On the topic of history repeating itself, Bitcoin could go “parabolic” next year if it follows its behavior after previous halvings, a well-known analyst has forecast.
In a tweet on Nov. 4, Mike McGlone, senior commodity strategist at Bloomberg Intelligence, became the latest figure to suggest that next year would be hyper-bullish for BTC.
The reason, he said, is a simple balance of supply and demand — Bitcoin’s supply reduced at the latest halving in May, while buyer demand for new coins is only increasing.
“Bitcoin may undergo a parabolic 2021, as it did in 2013 and 2017, if previous patterns play out again,” he wrote.
“New highs are a next potential iteration and may be only a matter of time unless something we don't foresee trips up the trend of greater adoption and demand vs. limited supply.”
Bitcoin supply and demand comparison chart. Source: Mike McGlone/Twitter
McGlone was likely referring to recent corporate buy-ins, along with the promise of PayPal users queuing up to use Bitcoin and other cryptocurrencies on the platform from next year.
At the same time, existing large-volume supporters such as asset manager Grayscale and payment network Square are only adding to their positions in 2020.
