Bitcoin (BTC) is inching closer to the $70,000 mark, fueled by a massive $2.4 billion inflow into exchange-traded funds (ETFs) over the past week. Investors are showing renewed interest in the world’s largest cryptocurrency as optimism around regulatory clarity in the U.S. grows, and the market braces for the upcoming 2024 U.S. Presidential election.
The surge comes as Bitcoin has gained 9% in the last seven days, strengthening hopes for a new all-time high (ATH). As of October 21, 2024, Bitcoin is trading at $68,388, and the bullish momentum is building. But the key question remains: Will Bitcoin push past its ATH of $69,000 or face resistance from profit-takers?
Key Factors Driving Bitcoin’s Price Surge
- Massive ETF Inflows: The recent spike in Bitcoin’s price is largely driven by inflows into spot-Bitcoin ETFs. Over the past week, U.S. spot ETFs attracted $2.4 billion in net inflows, signaling strong institutional interest.
- Regulatory Optimism: With the U.S. Presidential election on the horizon, there’s growing hope that the political landscape will become more crypto-friendly. Both major candidates, Donald Trump and Kamala Harris, have expressed pro-crypto views, which is boosting market confidence.
- Technical Indicators: Bitcoin’s Relative Strength Index (RSI) is currently at 68, indicating strong buying pressure. The on-balance volume (OBV) also trends upwards, signaling sustained capital inflows into Bitcoin.
Bitcoin’s Price Action and Resistance Levels
Despite the recent surge, short-term holders have started taking profits as Bitcoin nears $69,000. This could delay the next ATH, but overall market sentiment remains bullish.
| Key Levels | Price |
|---|---|
| All-Time High (ATH) | $69,000 |
| Next Major Resistance | $75,250 |
| Support Level | $65,130 (0.618 Fibonacci level) |
Analysts believe that if Bitcoin can break past the $69,000 resistance, it could target the $75,250 level. However, if profit-taking continues, the price may retreat to $65,130, which aligns with the 0.618 Fibonacci retracement level.
Will Short-Term Holders Slow Down Bitcoin’s Rally?
While Bitcoin’s bullish trajectory is clear, short-term holders who bought BTC between $66,900 and $69,200 may be tempted to sell as prices rise, which could create short-term resistance.
According to data from CryptoQuant, exchange inflows from traders holding Bitcoin for 1-3 months have surged in recent days. This group is likely capitalizing on the recent price hike, which could stall Bitcoin’s path to $70,000.
However, despite this potential profit-taking, the overall market sentiment remains positive. The long-term holders and institutional investors driving ETF inflows suggest that Bitcoin’s rally has strong support.
What’s Next for Bitcoin?
Several indicators point to continued growth for Bitcoin, but profit-taking could lead to short-term volatility. The outcome of the U.S. elections will likely play a key role in determining Bitcoin’s next move, particularly if crypto regulations become more favorable.
Expert Opinions on Bitcoin’s Future
- David Lawant, FalconX: “Bitcoin’s price is heavily influenced by the upcoming U.S. election, and the options market indicates that volatility will peak around this time. However, the long-term outlook remains bullish, especially with institutional demand through ETFs.”
- Jason Allegrante, Fireblocks: “The regulatory environment is rapidly changing in favor of crypto, and this is reflected in Bitcoin’s price action. The market is pricing in friendlier policies after the 2024 election.”
Conclusion: Will Bitcoin Hit $75,000?
Bitcoin’s price surge is supported by a confluence of factors, including institutional inflows, positive technical indicators, and growing regulatory optimism. While short-term holders could slow down the rally, the long-term outlook remains bullish. If Bitcoin breaks past the $69,000 resistance, it could aim for $75,000 and beyond.
Wondering what’s next for the crypto market? Find out how Ethereum’s surging netflows might push ETH beyond $2,800.
Disclaimer
Cryptocurrencies are highly volatile and can result in significant financial losses. Always conduct thorough research or consult with a financial advisor before investing.