Massive Bitcoin Move Imminent: 7 Key Reasons Behind The Bullish Outlook.
Bitcoin (BTC), the largest cryptocurrency by market capitalization, is showing signs of a potential breakout, according to analyst Miles Deutscher.
Historically, October has been a strong month for BTC, and recent trends suggest that the cryptocurrency may be on the verge of a substantial upward movement. Over the past week alone, the Bitcoin price has surged more than 13%, approaching its all-time high of $73,700 set in March of this year.
Increased Global Liquidity And Low Supply
Deutscher notes that Bitcoin has been consolidating above critical support levels for much of the year, positioning it for potential expansion. Despite numerous failed breakouts in the past, which have led to a general distrust among traders, the analyst believes that this environment may create an opportunity for a significant price increase.Â
Many retail investors remain sidelined, as indicated by Bitcoinâs current ranking on Coinbase and declining Google search interest in the cryptocurrency. This may suggests that the market force known as fear of missing out (FOMO), has yet to set in among investors.Â
The macroeconomic backdrop also supports Bitcoinâs potential for further gains. Increased global liquidityânow at its highest level in three yearsâhas historically influenced Bitcoinâs price positively.Â
Deutscher also emphasizes that as equity markets begin to recover, Bitcoin tends to follow suit, often correlating closely with the S&P 500. Additionally, Bitcoinâs supply on exchanges has reached an all-time low, suggesting that a supply squeeze may be imminent.Â
The analyst contends that this trend indicates that fewer BTC are available for trading, which could drive prices higher as demand increases.
October To April As âBoom Periodâ For BitcoinÂ
Deutscher also emphasized in his analysis the upcoming US presidential election, which he believes adds another layer of complexity to the market.
