Highlights:
- Bitcoin is currently trending towards the $71,353 resistance
- A rally through the $71,353 resistance could push the price to $75k or higher
- Confluence of factors, including rising hash rate, make the case for $75K plausible
Bitcoin has started the week on a strong note, continuing the momentum it has built up in recent weeks. Today, Bitcoin briefly rallied through the $69k level before experiencing a minor pullback. When going to press, Bitcoin was trading at $68,313, down by a negligible 0.20% in the day.
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However, interest in Bitcoin remains high in the day, an indicator that on the whole, investors are keenly watching Bitcoin and expect a big move soon. For context on the level of interest, Bitcoin trading volumes in the day are up by 90% to stand at $26.57 billion.
Technical Analysis – Bitcoin Price Rallies Through $68,324 Resistance
From the charts, Bitcoin is sending signs of a potential rally this week. On the 1-day chart, Bitcoin is bullish, having crossed the $68,324 resistance yesterday and closed above it. This is an indicator of rising bullish sentiment as evident in the fact that bulls have today pushed Bitcoin to $69k, albeit briefly.
If bulls trigger another rally intra-day, the key level to watch for Bitcoin would be the $71,353 resistance. A rally through this resistance could easily see Bitcoin rally to prices as high as $75k in the short term.
On the other hand, if bears take control and push Bitcoin through $68,344, now support, then a correction to $68,267. Of these two scenarios, the odds are that bulls will remain in control for the better part of the day and potentially the week. This means Bitcoin has strong potential to rally to prices as high as $75k in the short term.
Bitcoin Hash Rate Points to Rising Miner Optimism
Several factors support a bullish price move in the short term. One of them is the rising Bitcoin hash rate that is currently hitting an all-time high. This means miners are restarting their machines with expectation of higher Bitcoin prices going forward.
JUST IN: #Bitcoin Hashrate hits a NEW ALL-TIME HIGH 🚀 pic.twitter.com/4SUlZHPtmJ
— Bitcoin Magazine (@BitcoinMagazine) October 21, 2024
It is a bullish signal that is already reflected in Bitcoin’s price action intra-day. Miners expect Bitcoin to hit $100k or higher, so it is not surprising that FOMO is building up around Bitcoin.
Social Media Sentiment Turning Bullish
There is also the fact that sentiment on social media is turning positive. On platforms like X, more crypto analysts are increasingly bullish on Bitcoin. Consensus is on the rise that after a prolonged period of consolidation, Bitcoin could finally be in a breakout. Such bullish social media sentiment could trigger retail FOMO into Bitcoin, a factor that strengthens the case for Bitcoin to rally to prices above $70k in the short term.
#Bitcoin is currently in the Boring Zone.#Altcoins are currently reversing and ending the longest bear market in history.
This means it's time for Banana Zone, and depending on how long it will take with liquidity, this Banana Zone is going to be epic. pic.twitter.com/XNNBpvUomr
— Michaël van de Poppe (@CryptoMichNL) October 21, 2024
Political Climate in the US Favors a Bitcoin Rally
Bitcoin is also responding positively to the rising expectations of a Trump win in the upcoming US elections. Trump has come out as openly pro-Bitcoin, to the extent of advocating for it to be made part of the US currency reserves. As such, the fact that his odds of winning are high is turning more people bullish.
Besides, the democrats, who have been largely anti-crypto, are increasingly softening their stance. This means the market expects Bitcoin to keep doing well, even if Kamala wins in the upcoming US elections. This increasingly favorable political climate makes the case for a Bitcoin rally stronger.
Bitcoin Price Action in Line with Past Bull Cycles
There is also the fact that Bitcoin’s price action is increasingly in tune with past halving cycles when the price consolidates for months before breaking out in a parabolic price run. Historically, Bitcoin rallies start in October in bull cycles.
This time around Bitcoin has been strong since September, an indicator that this cycle could be stronger than any other. With institutional demand for Bitcoin now unprecedented, chances are that this could be the beginning of a rally that takes Bitcoin to prices as high as $300k by 2025.
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