As a seasoned analyst with over two decades of experience in the financial markets, I have seen my fair share of market trends and cycles. However, the current state of Bitcoin (BTC) feels like uncharted territory, given its rapid growth and unique characteristics.
According to analyst Miles Deutscher, there are indications that the leading digital currency, Bitcoin (BTC), could experience a significant surge in value.
Historically, October has often been a favorable month for BTC, and current patterns hint at potential significant growth. Over the last seven days, the Bitcoin price has soared by over 13%, nearing its record peak of $73,700 reached in March this year.
Increased Global Liquidity And Low Supply
German observes that Bitcoin has been holding steadily above crucial support thresholds throughout most of the year, suggesting it could be poised for growth. While there have been several unsuccessful attempts to break these levels in the past, causing skepticism among investors, the analyst posits that the current situation might present a chance for a substantial price surge.
It appears that a significant number of retail investors are holding back from investing in Bitcoin, as suggested by its current position on Coinbase and decreasing online searches for the cryptocurrency. This could indicate that the phenomenon known as Fear of Missing Out (FOMO) has not yet sparked among investors.
In simpler terms, the current economic landscape seems favorable for Bitcoin’s possible increase in value. The high levels of global money supply (highest in three years) have traditionally had a positive impact on Bitcoin’s pricing.
German’s point highlights that as stock markets start bouncing back, Bitcoin typically mirrors this trend, showing a high correlation with the S&P 500. Furthermore, the amount of Bitcoin in circulation on exchanges has hit a record low, hinting at an approaching supply shortage.
The analyst argues that this pattern suggests there’s less Bitcoin up for sale on the market, potentially causing prices to rise due to increased demand.
October To April As ‘Boom Period’ For Bitcoin
In the course of his study, German highlighted the significance of the upcoming U.S. presidential election, stating it may introduce an additional level of intricacy in the market. The analyst posits that if Donald Trump were to win, the market response could be positive, and Bitcoin might serve as a cornerstone for the financial stability of the United States.
As an analyst, I find myself intrigued by the Republican candidate’s proposal. A key aspect of their platform involves a commitment to transform Bitcoin into a national reserve asset. The intention behind this move is to leverage its potential in an attempt to alleviate our staggering $35 trillion national debt. This ambitious plan is bolstered by Senator Cynthia Lummis, who expresses strong support for cryptocurrencies.
According to the analyst, seasonality is significant as well. German’s analysis indicates that the timeframe between October 2024 and April 2025 has historically been a “peak season” for cryptocurrencies.
As Bitcoin attempts to move beyond its current price band, it may encounter resistance near the $70,000 mark. However, Deutscher anticipates that such a breakout will occur, largely due to the significant level of short positions in Bitcoin.
Currently, Bitcoin is being traded at $66,940. Over the past day, its value has decreased by 1.5%. This decline occurred due to substantial opposition it faced around the $68,000 mark, which has so far prevented it from reaching the major resistance of $70,000.
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2024-10-18 09:04