Bitcoin Closes the Week At $69,200, Bulls Back In Charge

Bitcoin ended the week with a strong weekly close at $69,200, and bulls are preparing for a push to $70,000

Bitcoin surged to $69,375 early Monday morning. As the 2024 US presidential elections approach, investor appetite for risk-on assets, including Bitcoin and other cryptocurrencies, is back.

Source: Brave New Coin Bitcoin Liquid Index

Market participants are gearing up for Election Day, now less than three weeks away. According to Polymarket, the odds of former president Donald Trump winning the election reached a record 60%, further driving the risk on appetite.

To confirm a breakout from its sideways movement, Bitcoin needed to secure a weekly close above $68,700, according to crypto analyst Rekt Capital, which Bitcoin achieved.

On X, he wrote, “We’re on the verge of confirming a breakout beyond the multi-month channel resistance. A weekly close like this would be very bullish.”

Source: X

Analyst Dave The Wave had similar thoughts, writing on X, “Through 70k and we be in business…”

Source: X

ETFs Have Hit Their Stride

Today’s breakout has also been fueled by positive Bitcoin ETF inflows. On Oct. 17, Bitcoin ETFs hit a new record, surpassing $20 billion in total net flows within just 10 months of launching. 

Cumulative net inflows into spot Bitcoin ETFs have now exceeded $20 billion since their launch earlier this year, setting a record as the most successful ETF debut in history. For comparison, it took gold ETFs five years to reach the same milestone.

Source: X

Eric Balchunas, Senior ETF Analyst at Bloomberg, highlighted the achievement on X, stating, “Bitcoin ETFs have crossed $20 billion in total net flows (the most important and hardest-to-grow metric in the ETF world) for the first time after a huge week of $1.5 billion. To put that into perspective, gold ETFs took about five years to hit the same number. Total assets now stand at $65 billion, a new high water mark.”

Another factor pushing Bitcoin higher is the anticipation of Federal Reserve rate cuts in November, along with the rising chances of pro-crypto candidate Donald Trump winning the 2024 presidential election. These conditions have set the stage for what appears to be the start of a new Bitcoin bull cycle, backed by both technical and on-chain indicators.

Bitcoin Poised for $100K in 2025?

Market analyst Coosh Alemzadeh used the Brave New Coin Bitcoin Liquid Index to show that Bitcoin’s price is entering a new bullish phase, highlighted by its two-month logarithmic chart. Historically, Bitcoin has followed a pattern where it consolidates before exploding into a near-vertical rally. This happened in previous cycles, such as the 60x increase in 2011, the 20x rise in 2017, and the 6x run during the 2020-2021 bull market.

As of October 2024, Bitcoin is showing signs of breaking out of a prolonged consolidation, which could mark the start of another significant rally. Bitcoin’s “parabolic phase” may be about to begin, potentially setting it up for a rise above $100,000 in 2025, with some long-term projections reaching as high as $250,000.

Source: X

Whale Activity Signaling Bullish Momentum

On-chain data supports this bullish outlook, with the “Exchange Whale Ratio” closely resembling patterns seen in 2020, right after the COVID-19 market crash. At that time, Bitcoin whales—the large holders—aggressively accumulated, sparking the bull run that took Bitcoin to new all-time highs by the end of 2021. As of October 2024, the same pattern is emerging, suggesting that whales are once again positioning for significant future gains, likely aiming to capitalize on the next Bitcoin halving event.

Decline in Stablecoin Dominance Fuels Optimism

Another key indicator is the declining dominance of stablecoins like USDT, USDC, and DAI, which have been losing market share since mid-2024. This decline in stablecoin dominance often precedes major price increases for top cryptocurrencies, including Bitcoin. When investors move capital out of stablecoins and back into assets like Bitcoin, it reflects a growing risk appetite and confidence in the market.

If this trend continues, the flow of liquidity into Bitcoin could further drive its price higher, confirming that the parabolic phase of Bitcoin’s rally is underway. All signs point to Bitcoin being well-positioned for a major bull run in the coming months, potentially setting the stage for even bigger gains in 2025.

Tether’s US dollar-backed stablecoin, USDT, has hit a record market cap of $120 billion, also marking a potential catalyst for a crypto market surge.

As the largest stablecoin by market capitalization, Tether surpassed the $120 billion mark on October 20, based on real-time data available on the company’s website. Stablecoins like Tether play a crucial role in bridging fiat currencies and digital assets. When the supply of stablecoins increases, it often signals an upcoming bull market, suggesting that investors are gearing up to buy cryptocurrencies.

Uptober appears to be in full swing, can Bitcoin push past $70,000? That’s the question for this week.