Key Points
- Bitcoin (BTC) price rebounds, trading at about $68,486, anticipating a bullish run due to potential Fed rate cut.
- Technical analysis shows Bitcoin needs to consistently close above the $70K-$72.7K range to enter a parabolic phase.
Bitcoin (BTC) has regained its rising momentum, opening the last week of October on a bullish note. The leading cryptocurrency surged about 2% in the last 24 hours to trade at approximately $68,486 on Monday, October 28, during the mid-European session. As October draws to a close, the probability of Bitcoin initiating the next phase of the crypto bull run has significantly increased.
Technical Analysis and Predictions
From a technical viewpoint, the Bitcoin price needs to close consistently above the resistance range between $70K and $72.7K to enter its much-anticipated parabolic phase. Since March 2024 to date, Bitcoin’s price has been consolidating in a similar pattern to last year between March and October.
If history is any guide, Bitcoin is well-positioned to rally towards a new all-time high in the coming weeks and potentially extend into the first half of 2025. However, if Bitcoin’s price consistently closes below the established support level of around $66.5K, the bearish outlook may dominate in the short term, possibly leading to further crypto market declines before a potential rebound.
Fundamental Factors Favoring Bullish Outlook
Bitcoin’s price has recorded noticeable growth since the crypto market crash on August 5, driven by increasing demand from large investors. Over the past four weeks, the supply of Bitcoin on centralized exchanges has decreased by more than 40K, equivalent to over $3 billion.
The significant drop in Bitcoin supply on centralized exchanges in the past seven months to approximately 2.39 million is largely attributed to the US spot BTC ETFs. Recent market data reveals that US spot Bitcoin ETFs have seen a net cash inflow of over $3.4 billion in the past three weeks.
Bitcoin’s price is also projected to follow the ongoing Gold bull run, which has also influenced major stock indexes.
Next week, US voters will decide on the next President for the next four years, with many crypto investors speculating on Republican presidential candidate Donald Trump. According to the latest presidential polls from Polymarket, a decentralized prediction market, Trump has a 66% chance of winning the elections next week, while his closest challenger Kamala Harris has a 33% chance of winning.
Moreover, the US Federal Reserve is expected to implement another rate cut next week to improve the country’s economic outlook. The decision will largely depend on this week’s employment data.
