Key Points
- Bitcoin’s price has been on a strong rebound, reaching its highest level since July 29.
- Factors such as the crypto fear and greed index and bullish market patterns contribute to Bitcoin’s price surge.
Bitcoin’s value has been on a steady rise, marking a third day in a row of increases and reaching a high not seen since late July.
Bitcoin (BTC), the first and most significant cryptocurrency in terms of market cap, revisited the psychological barrier of $68,000, thereby marking a nearly 40% increase from its August low point.
Market Indicators and Patterns
There’s a growing probability that Bitcoin’s upward trajectory will persist. One contributing factor is the shift in the crypto fear and greed index from 37 (greed zone) last week to 58. Bitcoin and other cryptocurrencies usually see a surge when the market sentiment leans towards greed.
Furthermore, Bitcoin’s price has formed a golden cross pattern, indicating a bullish trend, as the 50-day and 200-day Weighted Moving Averages (WMA) have crossed over. The WMA is considered superior to simple and exponential moving averages as it smooths data by giving more weight to recent movements.
Bitcoin has also formed an inverse head and shoulders pattern and surpassed the significant resistance point at $66,561, its highest swing on September 27. It has also crossed the descending trendline that connects the highest swings since March.
Political Factors and Analyst Predictions
Bitcoin’s rally can be attributed to two main reasons. Firstly, the increased likelihood of Donald Trump winning the election, with his probability at 60% according to Polymarket. Trump is viewed favorably by the crypto industry due to his strong support for the sector. He owns cryptocurrencies worth over $6 million and has launched a crypto project called World Liberty Financial.
Furthermore, his policies of tax cuts, defense spending, and tariffs could lead to a $7.5 trillion deficit in a decade. With the U.S. public debt already exceeding $35.5 trillion, investors view Bitcoin as a better alternative to the U.S. dollar due to its supply cap of 21 million coins. Polymarket’s odds of Bitcoin reaching a record high have risen to 70%.
Analysts are also optimistic about Bitcoin’s prospects. Peter Brandt, a popular trader with over 740,000 followers, believes that the coin has more upside, with his initial target being $73,800, its all-time high. Other analysts, such as Miles Deutscher and Michael van de Poppe, have also shared positive Bitcoin forecasts.