Why Crypto Brains are Betting on a November Rally

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It’s November and the predicted “bull-run” for Bitcoin is imminent. There are a lot of excellent reasons to expect the prediction could be correct, but we shouldn’t all jump in before the indicators are right. If you’ve not joined the crypto space yet, perhaps now is the time.

Experts and amateurs alike can make predictions that never come to fruition, but this one has been on the cards for several months, and no one has backed away from the claims. Vague allusions to massive increases in institutional investment and spurious claims on the effects of an SEC ruling on Bitcoin ETFs have so far not made the impact that was expected. However, there is so much on the cards for November that it may be difficult for the cryptocurrency space to be unaffected.

Bakkt is prepped for launch

If you have been living in a cave, you may not have heard about the Bitcoin ETF being launched by the New York Stock Exchange (NYSE) parent company, ICE (Intercontinental Exchange). The planned launch date “early” November, pending approval by the CFTC (Commodity Futures Trading Commission). However, it is not expected to attract the same hemming and hawing as other ETF proposals have received from the SEC due to Bakkt not offering leverage, or margin as part of its structure.

There are some big names involved in this project such as Starbucks, Microsoft and Boston Consulting Group (BCG), to name a few.

Fidelity goes digital with Fidelity Digital Assets

If you’re not an institutional-level investor, you may not have heard about this before, but one of the largest financial services providers has launched a digital asset arm. We have been waiting all year with baited breath for institutional investors to make the cryptocurrency market go “boom”, and with 13,000 institutional investors as clients, FDA Services could be a strong catalyst. It’s also great to see that Bakkt won’t be the only institutional level option on the crypto playing field.

Bitcoin has achieved a measure of stability

I’m not suggesting for a moment that cryptocurrency is any less volatile, but Bitcoins seems to have settled into a reasonable channel from which it has struggled to maintain any kind of rally or absolute decline. Maintaining a steady level between $6-7000 is no mean feat given the previous volatility that Bitcoin has shown in the past. This appearance of decreased volatility is also a significant indicator that a rally is approaching.

Bitcoin likes its historical repetition

If you have been following Bitcoin for a while or you have done your research into the history of the Bitcoin phenomenon, you may have noticed that for the past few consecutive years Bitcoin has experienced a surge in Q4.

You may have noticed that the price charts for rallies in 2014 and 2017 are astonishingly similar.

There are also some other titbits that could affect the crypto market before the year is out;

  • Coinbase is set to expand their altcoin assets,
  • Ethereum Futures are rumoured, if not pending,
  • Some of the ad-bans plaguing the industry have been lifted,
  • Ripple XRP’s increasing adoption by banking circles is proving that cryptocurrency works (while ignoring the decentralisation aspect completely).

Unlike traditional trading markets, such as Forex and stocks, cryptocurrencies are not individually affected by politics and economic performance for an issuing country, and as a consequence, they have no robust fundamental indicators, and technical analysis has yet to prove itself as a reliable predictive tool more than 5-0% of the time. What this means for crypto traders is that the market is driven almost entirely by sentiment and emotion. The actual effects of the events mentioned above could be negligible, but the market sentiment surrounding them could be explosive.

There is much speculation in the crypto space, and it would be foolish to assume that anything will happen in the market. The trick is in reading the signs and keeping on top of the news coming your way.

While there are no guarantees in the trading markets, but it may be time to  

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About Author

Amie Parnaby is a professional writer with an experience in a broad range of industries, from I.T to training, from optics to banking. Within these settings, Amie has provided quality web content, training materials and technical documentation. She is currently an in-house Content Writer at Leverate.