Leading cryptocurrency Bitcoin ($BTC) has recently crossed the $71,000 mark—a level it has struggled to reach for months.
With October living up to its nickname as “Uptober”, Bitcoin is now up by 12% this month. It’s nearing its all-time high, with only about 3.5% left to surpass its previous peak of $73,750.
Bitcoin’s rally has also impacted the entire crypto market, pushing its overall value up by 4.56% to reach $2.4 trillion.
Additionally, market trading volumes surged by a significant 89.41% in the past 24 hours, now standing at $100.99 billion.
According to analysts at CryptoQuant, a large part of Bitcoin’s upward trend is due to major investors on the Binance exchange, often called “whales”.
These high-value traders have been particularly active during Asian trading hours since 14 October, which has created extra momentum in Bitcoin’s price.
Meanwhile, US-based institutions and large Bitcoin wallet holders are holding more Bitcoin than before. Bitget Research’s chief analyst, Ryan Lee, said this rising price is “largely driven by increased demand for spot Bitcoin ETFs”.
Over the past week, these exchange-traded funds (ETFs) have seen record-high inflows, totalling $2.4 billion.
Demand for Bitcoin-focused ETFs has exceeded $3.5 billion this month, with BlackRock’s IBIT ETF seeing the largest one-day inflow of $315.19 million on 28 October alone.
US election and economic outlook
The upcoming US presidential election is adding to Bitcoin’s momentum, as investors anticipate changes that could positively impact the cryptocurrency market.
Both of the main candidates have expressed a favourable stance toward cryptocurrencies, each suggesting they might support crypto-friendly regulations.
Former President Donald Trump, has pledged to turn the US into the “crypto capital of the planet” if he is re-elected.
Vice President Kamala Harris, meanwhile, is seen as a more moderate candidate on the topic, especially in contrast to President Joe Biden’s recent regulatory crackdowns.
Lee also noted, “Both candidates have expressed a commitment to providing clearer regulatory frameworks for digital assets”.
Trump, however, has been more active in reaching out to the crypto community, which has made him a popular figure in some crypto circles.
Market analysts believe that a shift toward clearer and more supportive regulations in the US could boost the legitimacy and stability of digital assets like Bitcoin.
Alongside election speculation, upcoming US economic data releases are also seen as potential influences on Bitcoin’s price.
Key indicators, including third-quarter GDP growth, employment figures, and inflation measures such as the Personal Consumption Expenditures (PCE) index, are expected to play a role in the Federal Reserve’s next moves on interest rates.
These economic signals are critical to investors as they assess Bitcoin’s future price path, especially since any signs of economic slowdown or changes in interest rates could impact market sentiment.
Bitcoin’s technical indicators also look promising, with its 50-day moving average recently crossing above its 200-day average, which is commonly seen as a positive signal for future growth.
Resistance and potential new highs
As Bitcoin continues to rise, analysts are watching for whether it can overcome resistance levels and potentially reach a new record.
Currently, the $70,000 level serves as a solid support, giving Bitcoin a strong foundation as it eyes a move closer to its all-time high.
According to the lead analyst at FxPro, Alex Kuptsikevich, “The current market prices are the highest they’ve been since July”.
He pointed out that in previous instances, Bitcoin has paused or declined at similar price points, but he added that “this time, the trend is more bullish”, especially as the market has been gaining momentum since early September.
Some analysts believe Bitcoin could go beyond $80,000, supported by activity in the derivatives market.
Experts at Bitfinex noted that options markets have shown a noticeable increase in bets on Bitcoin reaching higher prices by year’s end.
In particular, options expiring on 27 December have seen heightened interest, with many traders betting on an $80,000 strike price. This suggests that traders are positioning for potential gains after the US election.
As Bitcoin continues its climb, it has encountered some resistance near the $72,000 mark, with a notable volume of sell orders waiting just above that level.
Yet, data from CoinGlass shows that Bitcoin has more solid support at slightly lower levels, such as between $66,845 and $68,948.
According to the in/out of the money around price (IOMAP) metric from IntoTheBlock, this indicates that Bitcoin’s “path of least resistance” remains upwards.
Analysts say that if Bitcoin can secure a strong close above $72,000, it could move into “price discovery”—a term used when assets break into new high territory.
Analyst Jelle recently commented, “One last hurdle before price discovery”, referring to the resistance zone between $72,000 and the peak of $73,835.
This view is shared by another analyst, Amber_D, who remarked that Bitcoin’s path upward is likely to continue, given the support it has in place.
As the market awaits next week’s economic data and election outcomes, the sentiment remains cautiously optimistic.
