Key Points
- Bitcoin (BTC) price has broken above $64.5K, indicating a potentially bullish momentum for the second half of October.
- The surge of Bitcoin’s price has also had a positive trickle-down effect on other altcoins.
The price of Bitcoin (BTC) began the third week of October on a bullish note, positively affecting other altcoins. With a fully diluted valuation of around $1.35 trillion and a daily average traded volume of roughly $28.3 billion, Bitcoin’s price surged by 3 percent to trade at about $64,664 on October 14, during the mid-London session.
This bullish trend in Bitcoin’s price resulted in a 2 percent increase in the total crypto market cap, which was around $2.35 at the time of reporting. Consequently, nearly $200 million was liquidated from the total crypto market, primarily involving short traders.
Bitcoin’s Bullish Outlook
After fluctuating below $59K last week, Bitcoin’s price is now poised for a much-anticipated rally beyond $100K in the upcoming quarters. Despite being stuck in a bearish consolidation for the past seven months, Bitcoin’s price has already established a solid support level of around $54K.
From a technical perspective, Bitcoin’s price needs to convert the resistance range between $64.5K and $66.5K into a support level to ensure bullish momentum ahead. Veteran trader Peter Brandt suggests that Bitcoin’s price needs to consistently close above the July high of about $69.7K to invalidate potential bearish pressure towards $48K.
Driving Forces Behind Bitcoin’s Surge
The recent surge in Bitcoin’s price has been brewing for the past three months, driven by increasing demand from institutional investors led by MicroStrategy Inc. According to market data provided by CoinGlass, the overall supply of Bitcoin on centralized exchanges has continued to decline exponentially in the recent past.
In the last five weeks, US spot Bitcoin ETF issuers have purchased BTCs worth around $2 billion. This has significantly absorbed any selling pressure coming from Bitcoin miners. The crypto market has been reacting to the recent Fed rate cut, which accelerated the ongoing global economic shift.
In addition to the deteriorating geopolitical situation in the Middle East and between NATO and Russia, the demand for Bitcoin and other digital assets is expected to continue to rise. Meanwhile, with the 2024 US election just three weeks away, a historically crypto-bullish outlook is expected.
