Key Points
- Bitcoin’s price is expected to undergo a significant bullish rally, potentially surpassing $74K.
- The price surge is being fueled by high demand from whale investors, particularly US spot BTC ETF issuers.
Bitcoin’s price has been gaining momentum in recent weeks, indicating a bullish October. The cryptocurrency surpassed its July peak of around $69K, reaching a daily high of approximately $73,562, before reducing by 2 percent to around $72,115 on October 30.
The price surge has brought Bitcoin close to an all-time high (ATH) of around $73,737, which was achieved in March 2024. This means that 99 percent of Bitcoin holders who purchased in the past are now in profit.
A Potential Major Bullish Uproar
Bitcoin’s price has been rallying against the altcoin market, with its dominance increasing to a multi-year high of about 60 percent. From a technical analysis perspective, Bitcoin is on the verge of a significant bullish uproar. The fear of further capitulation has greatly reduced recently. At the time of writing, Bitcoin’s fear and greed index had risen to 77 percent, indicating extreme investor greed.
Crypto analyst Ali Martinez suggests that Bitcoin’s price is about to enter a parabolic phase based on previous bull market cycles. The MVRV ratio has experienced a golden cross with the 364-SMA, often followed by a major bull run.
However, Bitcoin’s price must consistently close above the resistance level of about $73,737 in the coming weeks to validate a potential rally toward a new ATH. If a successful bullish breakout occurs, the next major liquidity range for Bitcoin is between $84K and $94K. On the other hand, a potential drop below $70K could push Bitcoin’s price towards the support range between $66K and $68K, before rebounding towards the all-time high.
The Driving Force Behind the BTC Pump
Bitcoin’s price has significantly benefited from high demand from whale investors, led by US spot BTC ETF issuers. This has resulted in speculation of a similar Bitcoin rally to Gold, which has been in price discovery recently.
According to recent market data, the supply of Bitcoin has been declining rapidly due to high demand from US spot BTC ETF issuers. On Tuesday, these issuers registered a net cash inflow of over $870 million, holding over $72 billion in net assets under management (AUM). BlackRock’s IBIT led with $642 million in net cash inflows on Tuesday, the highest since early June.
With pro-crypto presidential candidate Donald Trump leading in major polls ahead of the next week’s election and an anticipated Fed’s rate cut, Bitcoin’s price is expected to maintain a bullish outlook.
