Highlights:
- Bitcoin is in a minor correction after failing to test the $64,048 resistance
- A rally through $64,048 resistance could see Bitcoin rally to $65k
- Rising expectations for a bullish October could trigger a rally to $65k short-term
After a notable correction last week, Bitcoin has kicked off the new week with a bullish surge. In the past 24 hours, the world’s largest cryptocurrency has rallied over 2%, breaching the $63,000 mark. At the time of going to press, Bitcoin was trading at $63,211.85, up by 1.84%. This signals a potential new uptrend as market dynamics shift in favor of bulls.
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Chart Analysis – Bitcoin Eyes Key Resistance Level
Examining Bitcoin’s recent price movements reveals that the cryptocurrency is forming a new upward trajectory after confirming strong support at $60,141 on October 3. However, Bitcoin bulls are encountering some weakness below the $64,048 weekly resistance.
Should the bulls gather enough strength to break through the $64,048 resistance, Bitcoin could see a swift rally toward the $65,000 mark. This could also set the stage for more gains.
On the downside, if the bulls lose steam and the bears regain control, a correction to the $62,595 support level could occur. A breach of this support could further push Bitcoin down to the next key support level at $61,709 in the short term. Despite these potential scenarios, market sentiment currently leans toward a bullish breakout above $64,048.
October’s Historic Bullish Momentum
One of the key factors driving optimism in the market is Bitcoin’s historical performance in October, especially in halving years. Historically referred to as “Uptober,” October has been a particularly bullish period for Bitcoin.
UPTOBER IS HERE pic.twitter.com/PZdP3Le7Hn
— borovik (@3orovik) October 7, 2024
This trend has contributed to the heightened expectations that this month could be one of the strongest in Bitcoin’s price history, especially after a robust performance in September. The rally seen today could ignite FOMO among investors who are anticipating further gains. The psychological impact of October’s potential bullish trend could add upward pressure on Bitcoin’s price.
Geopolitical Factors and Market Sentiment
Market sentiment also appears to have adjusted to recent geopolitical events, which initially sparked volatility. Earlier in the month, the shelling of Israel by Iran caused a ripple of concern in the global markets.
However, with this event now factored into market pricing, investor focus is shifting back to the anticipated “UpTober” rally. This renewed focus is already reflected in Bitcoin’s current price action, suggesting that geopolitical concerns have taken a backseat.
Elon Musk’s Warning and Bitcoin’s Position as Sound Money
Adding to the bullish narrative is a recent statement by Elon Musk, made during a Trump rally. Musk warned of a potential U.S. bankruptcy due to its escalating $35 trillion national debt. This looming economic concern has reinforced the idea of Bitcoin as a form of “sound money.”
Elon Musk's full speech from Butler, PA. This is what real momentum looks like. Let's Go! pic.twitter.com/gYzcDFhhHC
— Greg Knight (@TrueGregKnight) October 6, 2024
Unlike fiat currencies, Bitcoin’s supply is capped and cannot be inflated by printing. This positions it as a hedge against traditional financial systems. As concerns about the dollar’s value grow, investors may increasingly turn to Bitcoin, driving its price even higher.
What Lies Ahead for Bitcoin Price?
Overall, Bitcoin’s 48-hour momentum, combined with the optimistic outlook for October, could herald the start of a significant rally. While uncertainties remain, especially concerning global economic conditions and market volatility, Bitcoin seems to be sending strong signals of potential upside soon. Investors will be closely watching the $64,048 level as the next critical milestone in Bitcoin’s journey to new all-time highs.
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