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Bitcoin (BTC), the world’s largest cryptocurrency by market capitalization is gaining significant attention from the crypto community following its impressive price surge over the past 24 hours. With a surge of over 6%, BTC reclaimed the $66,000 level for the second time since July 2024. 

Reason Why Bitcoin Price is Increasing

The potential reason for this massive upside momentum is the upcoming presidential election in the United States. According to the data shared by trading firm QCP Capital, Bitcoin’s current price action is similar to those noticed before the U.S. election in 2016 and 2020. During that period, BTC experienced a significant upside rally.

QCP Traders Comments

QCP Traders said, “If we look back to 2016, BTC traded in a very tight range for over 3 months. It wasn’t until three weeks before U.S. Election day that BTC began its rally from $600 and finally doubled its price by the first week of January.”

They further added, “Similarly, in 2020, BTC was stuck in a boring range for half a year and only started rallying from $11K just three weeks before U.S. Election day, reaching a high of $42K by January.”

While adding October’s bullish historical pattern and positive performance, traders added, “Today’s rally has definitely given the market a glimmer of hope just as Uptober optimism was fading.” 

Bitcoin Technical Analysis and Upcoming Levels

According to expert technical analysis, Bitcoin appears bullish but is currently facing a strong rejection at a crucial resistance level of $66,200 level.  The last time BTC reached this level, it experienced a sudden price decline of over 10%. If BTC breaches this hurdle and closes a daily candle above the $68,000 level, there is a strong possibility it could reach its all-time high.

Source: Trading View

Currently, BTC is trading above the 200-day Exponential Moving Average (EMA), indicating an uptrend. Traders and investors use this indicator to determine whether an asset is in an uptrend or downtrend. 

Bullish On-chain Metrics 

Bitcoin’s positive outlook is further supported by on-chain metrics that suggest bulls are back in the market and may sustain this upside rally. According to the on-chain analytic firm Coinglass, BTC’s Long/Short ratio currently stands at 1.10, the highest since September 2024. This record jump in the ratio suggests strong bullish sentiment among traders.

Source: Coinglass

Additionally, BTC’s future open interest has increased by 10% over the past 24 hours and 3.7% over the past four hours. This rising open interest indicates growing interest from investors and traders, potentially driven by the upcoming election.

Combining these on-chain metrics with the technical analysis, it appears that bulls are currently dominating the asset and may drive the rally to continue in the coming days, similar to historical trends.