Bitcoin (BTC) Price Rebounds Above $68K as Investors Bet on Fed Rate Cut Next Week amid US 2024 Elections

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As a seasoned analyst with over two decades of experience in the financial markets, I have seen my fair share of bull and bear runs. The current bullish outlook for Bitcoin price is reminiscent of the 2017 bull run, albeit with more maturity and institutional backing.

Initially showing a strong upward trend in the beginning of last week, Bitcoin experienced a gain of approximately 2% over the past 24 hours, reaching around $68,486 on October 28 during the mid-European trading session. As October draws to a close, there’s been an increased likelihood that Bitcoin could initiate another phase in the crypto market rally.

To put it simply, for Bitcoin’s price to move into its expected explosive growth stage, it needs to maintain closing prices above the resistance zone, which is roughly between $70,000 and $72,700. Since March 2024, Bitcoin’s price behavior has resembled its pattern from last year, where it stayed relatively stable for a prolonged period, much like between March and October of the previous year.

If historical patterns hold true, it seems that the price of Bitcoin could surge toward a record peak in the forthcoming weeks, and potentially continue its growth through the first half of 2025.

If Bitcoin’s closing prices persistently fall below the current support of approximately $66,500, a bearish trend might dominate temporarily, potentially leading to more declines in the cryptocurrency market before a possible recovery ensues.

So far, this perspective has been correct. Essentially, the price of Bitcoin (#BTC) may experience a slight slowdown following its surge to $68k, with any significant advance coming post the upcoming labor market report this week.

Also note that FOMC/election results are next week.

The cyclical view of #BTC says it should go up…

— Benjamin Cowen (@intocryptoverse) October 28, 2024

Major Fundamental Factors Favoring Bullish Outlook for Bitcoin Price Ahead

Last week, as Coinspeaker detailed, the price of Bitcoin has experienced significant growth following the crypto market plunge on August 5. This surge can be attributed to an increasing appetite from high-stakes investors, often referred to as whales. Over the past four weeks, the quantity of Bitcoin held in centralized exchanges has dropped by over 40,000 units, equating to a value exceeding $3 billion.

In the last seven months, approximately 2.39 million Bitcoins have moved out of centralized exchanges, largely due to the increased popularity of U.S. spot Bitcoin Exchange-Traded Funds (ETFs). Over the past three weeks, these U.S. spot Bitcoin ETFs have experienced a significant net influx of over $3.4 billion in cash.

BlackRock’s IBIT has remained a top player in significant cash infusions. The fund now manages more than $291 million in Bitcoin, which equates to approximately $27 billion in value.

The cost of Bitcoin may likely mirror the ongoing surge in gold prices, which have likewise affected significant stock markets.

In the upcoming vote, American citizens will choose their next President for the following four years. Many cryptocurrency investors are anticipating that Republican candidate Donald Trump may emerge victorious in next week’s election. As per the latest polling data from Polymarket, a well-known decentralized prediction market, Trump currently has approximately two-thirds (66%) chance of securing the win, whereas his main opponent Kamala Harris stands with a third (33%) probability of taking the office.

Over the coming week, it’s anticipated that the U.S Federal Reserve will reduce interest rates again in an effort to boost the nation’s financial prospects. The Fed’s choice next week is largely contingent upon the employment figures we’ll see this week.

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2024-10-28 12:05