- Bitcoin has dropped close to $3,000 in the past day after news that Binance was further restricting access for China Mainland users.
- Analysts are predicting a bull run starting at the end of this month that will see BTC set a new all-time high in November and run all the way to February next year.
Bitcoin has had a great month in October, rising from $43,400 two weeks ago to shoot past $57,500, a 32 percent gain in just two weeks. However, in the past day, this momentum has been broken for the first time this month, with analysts blaming Binance for announcing stricter China restrictions and a general downturn in the altcoin space. However, the best is yet to come for the top cryptocurrency and it will most likely rally to a new all-time high in November, analysts believe.
Binance has been pulling back products and services from its users in various parts of the globe, from South Africa and Hong Kong to Japan and now, China. In a statement on Wednesday, the exchange revealed it will delist the Chinese yuan OTC marketplace at the end of the year. It will also restrict access from users in mainland China.
“If the platform finds out mainland China users, Binance will restrict such accounts to the withdrawal-only mode,” Binance stated.
Immediately following the news, Bitcoin shed $1,300 to trade at $55,000, down from $56,300. It has dropped even further since and is now trading at $54,790, down by 4.67 percent in the past day.
A Bitcoin bull run beckons
Aside from the Binance news, some analysts blamed the downturn on the wider altcoin market which they believe is weighing on Bitcoin.
Matt Bloom, the global head of trading at cryptocurrency exchange Eqonex wrote, “The wider Alt (altcoin, or alternatives to bitcoin) market suffered losses, and eventually weighed on Bitcoin sentiment.”
Ethereum is down 1.5 percent, Litecoin is down by 3.3 percent, while Filecoin and Shiba Inu are both down by over 10 percent.
And it could get worse for Bitcoin before it gets better. Katie Stockton of Fairhead Strategies told CNBC:
For those who are looking to add exposure, the implications would be to wait a couple of weeks, noting that there is room to initial support defined by the cloud model, currently near [$47,000 to $48,000].
However, despite the tumble, Bitcoin is on its way to another historic high, most analysts believe. One of them is Rosh Singh, the CEO of cryptocurrency trading firm Quadency who stated, “Most analysts predict an all-time high in November, with a rally possibly continuing into January, February.”
One of the reasons analysts are being bullish is the rise of institutional trades in the Bitcoin space. Data from Glassnode revealed that high-sized trades, especially those above $10 million, have shot up in recent weeks and were one of the factors for the 32 percent rise in October.
Armando Aguilar, the digital asset strategist at Fundstrat Global Advisors told MarketWatch that he expects Bitcoin to hit $70,000 in November, basing his predictions on the widely-used stock-to-flow model. He remarked:
We note that during its prior run to a record high, BTC benefited from a similar increase in larger-sized transactions, likely from institutional allocations and deep-pocketed traders entering long positions.