Cryptocurrency has become a viable investment option, especially for Bitcoin, which is the first ever crypto. There is a growing adoption of the cryptocurrency, and in this article, we have collected some information on its predicted performance for the month of November so that you know what to expect as an investor or holder of Bitcoin.
Bitcoin is not just the first ever cryptocurrency created, it is also the number one by market capitalization. It attracted the most investors because it gained investors’ confidence, being the dominant cryptocurrency. Bitcoin currently accounts for nearly 60% of the entire market and is much higher most of the time. It has a capped supply of 21 million coins, with the current circulating supply of 18,518,643 BTC. Now Bitcoin has a price of about $11,376.
Bitcoin Price Prediction: Analysis
Bitcoin’s price has not been moving much until recently, when Square announced it was putting $50 million in it. The announcement pushed the price above $11,000 for the first time since 20 September. Prior to this, the price has been in a tight range in October, moving between $10,000 and $10,600.
It is worth noting that the price has managed to stay above $11,000 for the last week, but has been unable to break the $12,000 level. An analyst, Crypto Michael says that Bitcoin may go as high as $17,000 this year if it manages to break above the $12,000 to $12,400 price range. He, however, added that this may not happen soon as the price is jumping towards this level in one push which is not strong enough to break through and take another leg up.
Bitcoin then will have to spend some time under this level and consolidate to gather sufficient momentum for the next move which could be the start of another impulse move. Looking at Bitcoin’s daily chart against the U.S Dollar, this is clear as the 20 MA has crossed above both the 100 and 50 MA, signifying important bullish tendency.
The following are key resistance and support levels on the chart that should be noted for traders as calculated by Walletinvestors.
- Resistance Level (R3): 11873.77
- Resistance Level (R2): 11721.43
- Resistance Level (R1): 11608.27
- Pivot Point: 11455.93
- Support Level (S1): 11342.77
- Support Level (S2): 11190.43
- Support Level (S3): 11077.27
Bitcoin developers have added two major improvements to Bitcoin core. These are the Schnorr and Taproot Bitcoin Improvement Proposal (BIP) proposals which seek to improve Bitcoin’s privacy as well as transactions in general. The Schnorr improvement will make the use of multisig wallets easier by combining all the keys into one hybrid, thus reducing data size of multisig transactions and decongesting the network.
Taproot will introduce a new transaction output version and allow users to set conditions under which they can spend their Bitcoin. It also makes it possible under certain conditions for users to get back lost coins. When implemented, this will greatly improve the user experience on the network and make it more flexible than it is right now.
This is the biggest improvement to Bitcoin Core since the introduction of the SegWit address format in 2017. The main goal of the new address format was to increase Bitcoin’s block limit by reducing transaction data size, just like Taproot will do. Individuals or corporate organizations, such as exchanges, which carry out large Bitcoin transactions will find this new improvement particularly useful as they won’t have to deal with the complexity of many signatures in multisig wallets.
Bitcoin Price Prediction: Market Opinion for November 2020
The following are the opinions of some major price analysis websites. Their price predictions for Bitcoin’s performance in November may help you to also know what to expect concerning investing in Bitcoin as you enter the month.
Longforecast predicts Bitcoin to open the month of November at $12,286. The price is then expected to range between $11,260 and $14,075 before closing at $13,154.
According to Tradingbeasts, Bitcoin will open the month of November at a much lower price of $10,137.084. It will then fluctuate at a wide range between the maximum of $12,736.113 and minimum of $8,660.557 and close at $10,188.890.
Bitcoin Price Prediction: Verdict
These are the market predictions for the month of November. In general, Longforecast and Tradingbeasts suggest a bullish tendency for Bitcoin in the coming month, but things may not work out exactly as predicted, so any investments should be based on further research. However, Bitcoin’s trend remains bullish so a longer term investment may be an option.
Featured image: forbes.com