Analysts say Bitcoin may be ready to earn more profits in the coming weeks after recording a new record on Sunday.
“Now we’ve created a new ass in an impulsive way, so we started $150,000+ on the next leg,” commented Crypto analyst “Credibull Crypto” on Sunday, following a record high of $125,700.
Analysts say they will “bloat” this current level, suggesting another high could come this week, but did not rule out pullbacks to the $108,000-$118,000 zone.
“Stomping into the $108-$118,000 zone is a blessing if we get them.
Long-term crypto trader Crypto Chase repeated his sentiment, predicting that on Sunday there is a high chance that his new legs will rise. If Bitcoin is really strong, “pullbacks will be minor at best,” they added.
“I feel like BTC is trying to see another ATH within a few hours,” he added, “I think price discovery mode has started. I think it took a long time to keep price down. Gold and stocks are taking all the attention.”
Meanwhile, Bitcoin just printed the highest ending in history, history, for $123,543, according to TradingView.
BTC cools from Sunday Ass after a record-breaking candle every week. Source: TradingView
The effect of US government closure
This is due to several factors that have been attributed to a 11% surge in the past week, including the US government shutdown that began on October 1.
“Because of the US government shutdown and other financial pressures, investors may view Bitcoin as a safe haven, giving them another way to diversify away from the US dollar and the Treasury.”
He added that if the US dollar is depreciated and interest rates drop further, “it makes sense for investors to allocate more capital to other currencies and Bitcoin.”
Related: Bitcoin hits ever to the worst year since 1973 as USD well: Analyst
Bitcoin’s record high comes at the same time as the US dollar has seen its worst performance for decades. The US dollar index, which measures the US dollar against a basket of currencies, has fallen by more than 12% since the beginning of the year.
ATH driven by ETF flow
Meanwhile, venture capital investor Will Clemente said the Big Bitcoin move is not a trade in digital assets or derivatives, but rather a spot on exchange transaction funds that “see BTC as a rotation from goods and small caps.”
The US spot Bitcoin ETF saw “silly numbers” last week with an influx of $3.2 billion.
Bullish seasonality
A combination of these influences and bullish seasonality, BTC has won in 12 in the past fourth quarter and 10 in the last 12 Octobers, but this month could lead to another rally.
“It’s very powerful to go from $110,000 to $125,000 in a week,” said Crypto Youtuber Michaël Van De Poppe on Sunday.
Last week, Capriole Investments founder Charles Edwards predicted that Bitcoin’s $120,000 breakout would lead to “very quick moves” at $150,000.
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