This article is also available in Spanish.
Bitcoin (BTC), the largest cryptocurrency by market cap, is showing signs of a potential breakout, according to analyst Miles Deutscher.
Historically, October has been a strong month for Bitcoin, and recent trends suggest that the cryptocurrency could be on the verge of a major rally. upward movement. Over the past week alone, the price of Bitcoin has risen by more than 13%, approaching its all-time high of $73,700 that was set in March of this year.
Increased global liquidity and decreased supply
Deutscher Notes Bitcoin has been consolidating above critical support levels for most of the year, making it ripe for potential expansion. Despite several failed breakouts in the past, which have led to a general lack of confidence among traders, the analyst believes that this environment may create an opportunity for a significant price increase.
Many retail investors remain on the sidelines, as evidenced by Bitcoin’s current ranking on Coinbase and the decline in Google search interest in the cryptocurrency. TIts strength indicates that the market force known as fear of missing out (FOMO), has not yet spread among investors.
Related reading
The macroeconomic backdrop also supports Bitcoin’s potential for further gains. Increased global liquidity – now at a three-year high – has historically impacted Bitcoin’s price positively.
Deutscher also asserts that as stock markets begin to recover, Bitcoin tends to follow suit, and is often closely correlated with the S&P 500. In addition, Bitcoin Offer on stock exchanges Oil has reached an all-time low, indicating that a supply contraction may be imminent.
The analyst asserts that this trend indicates that fewer Bitcoins are available for circulation, which could push prices higher as demand increases.
October to April is considered a “boom period” for Bitcoin
Deutscher also emphasized the upcoming US presidential election in his analysis, which he believes adds another layer of complexity to the market. The analyst expects that a Former President Donald Trump wins This could lead to positive market reactions, with Bitcoin potentially positioned as a “pillar of financial stability in the United States.”
The Republican candidate has made a number of promises, most notably plans to create Bitcoin Reserve asset for the country, with the aim of using it to reduce the $35 trillion national debt, with additional support from pro-crypto Senator Cynthia Lummis.
Related reading
Seasonality also plays a role, according to the analyst. Deutscher explains that the period from October to April 2025 is traditionally seen as a “boom period” for business. Cryptocurrencies.
While Bitcoin needs to break out of its current range – likely to encounter resistance around $70,000 – Deutscher believes such a breakout is likely, especially given the significant short interest in Bitcoin.
At the time of writing, BTC is trading at $66,940, down 1.5% on the 24-hour time frame, where it encountered significant resistance at the $68,000 level, preventing it from tackling the largest resistance yet at $70,000.
Featured image of DALL-E, chart from TradingView.com
Comments are closed, but trackbacks and pingbacks are open.