After gaining over 7% since the start of October, Bitcoin (BTC) seems ready to kick off the next phase of its bullish trend. On the monthly Heikin Ashi chart, Bitcoin is set to close its first bullish month after a period spent retesting its breakout from the 2021 all-time high (ATH). This development has drawn keen attention from both investors and analysts.
Can Bitcoin really soar to new highs this time?
Since the August 5 crypto market crash, Bitcoin has held steady above a critical support range between $59,000 and $61,000. This steady support has boosted investor confidence, making way for possible further gains as Bitcoin consolidates above this level.
In the near term, Bitcoin may continue to mirror the ongoing rallies seen in major stock indexes and gold. Recent market data indicates that Bitcoin’s open interest (OI) has surged alongside its price, reaching a multi-month peak of over $37 billion, highlighting a renewed wave of market interest.
Institutional Investment Fuels Reduced Exchange Supply
Large-scale investors have driven a steady decrease in Bitcoin supply on centralized exchanges, as reflected by recent acquisitions. For instance, today, Metaplanet Inc. (Tokyo: 3350) disclosed holdings of over 1,000 Bitcoins, and BlackRock’s IBIT has continued to accumulate Bitcoin, adding to the scarcity on exchanges and potentially boosting demand.
Bitcoin’s price action could be significantly impacted in the coming weeks by the U.S. elections and upcoming Federal Open Market Committee (FOMC) data, which are both expected to sway market sentiment and direction. As these events unfold, Bitcoin’s price may react strongly, setting the tone for near-term market behavior.
With roughly 72 hours left in October, Bitcoin recently hit a major resistance level around $69,000—a level that caused a reversal in July. Crypto analyst Alan Santana believes that, given last week’s Doji candlestick close, there may be room for some bearish movement before a rally toward a new ATH.
From a technical perspective, if Bitcoin fails to hold the $61,000–$59,000 support range, it could risk a drop to around $52,000. However, if Bitcoin manages a close above $72,000 soon, it could trigger a rally pushing the price to $80,000 and beyond.
As October wraps up, Bitcoin’s next moves could influence the entire crypto market’s outlook.
The big question remains: breakout or breakdown? Let us know your Bitcoin forecast.
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