Bitcoin analysts predict major Q4 move after price reset

Bitcoin’s (CRYPTO:BTC) recent downtrend may have reset key metrics, positioning it for a significant move in the final quarter of 2024, according to analysts. 

Despite trading 7% below its late September high of $66,508, many experts believe the correction has set the stage for strong performance in the coming months. 

Jamie Coutts, chief crypto analyst at Real Vision, highlighted in a post on X that Bitcoin’s valuation metrics have declined from overbought levels, signaling that BTC is undervalued on multiple timeframes. 

He noted that the market value to realized value (MVRV) Z-score indicates Bitcoin is undervalued by as much as -107% on a four-year timeframe, suggesting room for growth. 

Additionally, Bitcoin’s open interest (OI) in perpetual futures remains elevated, signaling investor anticipation of future price movements. 

“Open interest is high in nominal and relative terms, but the funding rates are subdued,” Coutts said. 

He also pointed to global liquidity trends, noting that liquidity is “accelerating to the upside,” potentially setting the stage for a “major move higher.” 

Independent analyst Lyn Alden also connected Bitcoin’s price with global liquidity trends, showing that Bitcoin’s value has historically risen when global liquidity expands. 

Data from May 2013 to July 2024 revealed a strong correlation between Bitcoin’s price and global liquidity, indicating that an uptick in liquidity could drive further BTC gains. 

September was Bitcoin’s best-ever in terms of performance, closing 7.29% higher, fueling speculation that Q4 could bring further growth. 

Some analysts, however, caution that U.S. election uncertainties may create volatility. 

Analyst Timothy Peterson noted that Bitcoin’s performance tends to be weaker during election years due to investor caution. 

Despite this, others, like BTC Archive founder Archie, believe Bitcoin could build on its September gains and even reach six-figure prices by the end of 2024. 

As election outcomes become clearer, investor confidence may return, driving stronger performance into the year’s final months. 

At the time of reporting, the Bitcoin price was $61,624.77.