Over the last four days the Bitcoin (BTC) price has increased by more than $4,500 to now be above $71,000. Can this current surge continue, and will Bitcoin have enough gas in the tank to take out $73,800 and set a new all-time high?
Stars are aligning for Bitcoin
It’s been said before, but the stars really do look to be aligning for Bitcoin. The $BTC price has broken out of its 7-month long bull flag and has confirmed above. The U.S. Spot Bitcoin ETFs are buying like crazy, and pro-crypto Donald Trump looks as though he may pull off an election victory in a week’s time.
It’s been extremely difficult for Bitcoin investors to be able to concentrate minds and hold onto positions as the FUD (Fear, uncertainty and doubt) has rained down upon Bitcoin and the crypto industry as a whole.
However, the market reflects price truth, and more and more people are coming to a realisation of what Bitcoin actually is. Yes, there will continue to be volatility, with the $BTC price falling from time to time, but whilst the bull market is still intact, the ups should be more consistent than the downs.
Another 6.95K BTC left the system on Monday, as the U.S. Spot Bitcoin ETFs continued their buying spree with what equated to a daily inflow of almost half a billion dollars. Blackrock’s IBIT fund alone has accounted for purchases totalling $2.5 billion over the last 10 days.
On the political front, the U.S. election has entered its final week. Polymarket still has Trump ahead 66.3% to Harris 33.7%. Even traditional pollsters are also now saying that Trump has a slight edge. That said, everything will hinge on the seven swing States, and it could still be too close to call.
$BTC breaks through two more major resistances
Source: TradingView
At least for now, the Bitcoin price is thriving. The short-term price chart shows that after the trendline break, which also represented the neckline of the W pattern, the price has surged considerably. This surge has taken out the major resistances of $69,000, and $70,000, flipping them into support, and it now remains to be seen how much further this can go.
If the noises out of the U.S. elections continue to favour Trump, Bitcoin could keep rallying. However, even if the election finally ends with a Trump win, this could possibly act like a ‘sell the news’ event, and this could signal a retracement.
Last major resistance before the all-time high
Source: TradingView
In the weekly time frame, it can be seen that the $BTC price is right up against the last major resistance before the all-time high. A candle body close above this resistance at the end of this week would lay the last groundwork for the final assault on $73,800.
Going forward, even if the all-time high is achieved, there could be a period of consolidation which takes place above the $71,350 level, given that Bitcoin is starting to become quite overbought on the lower time frames. That said, even on the monthly, a potential curvature of the indicator lines to the upside in the Stochastic RSI is starting to take place, signalling upside momentum for several months to come.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice
Source: https://cryptodaily.co.uk/2024/10/bitcoin-btc-rises-above-71000-all-time-high-in-sight