Bitcoin (BTC) Price Explodes Above $72,000 as Bullish Bets Build – New All-Time Highs Imminent?

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Joel Frank

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Joel Frank

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Since graduating with a degree in economics from the University of Birmingham in 2018, Joel has worked as a financial market/cryptocurrency analyst. He firmly believes that emerging crypto technology...

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October 29, 2024 13:06 EDT

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Bitcoin has surged past the $72,000 mark on Tuesday, driven by bullish momentum ahead of the US presidential election and crucial economic data releases.

Currently trading at $72,400 on Coinbase, the Bitcoin price has risen over 3.5% today, according to TradingView.

Now just under 2% below its March record high near $74,000, Bitcoin appears poised for a retest of these levels.

According to data from Polymarket, former President Donald Trump holds a commanding lead over Democratic nominee Kamala Harris in betting markets, increasing the likelihood of a Republican sweep.

This outcome suggests that the US may become more pro-crypto under a Trump-led administration.

Trump has promised to establish a national Bitcoin stockpile, and with a Republican-controlled House and Senate, broad crypto regulations could swiftly pass.

This favorable outlook for crypto in the US has also fueled institutional interest in Bitcoin ETFs.

Coupled with a Federal Reserve that has begun cutting rates and a robust US economy, market conditions lean strongly toward further Bitcoin price gains.

Historically, Q4 is Bitcoin’s strongest quarter, and with seasonal tailwinds, the stage is set for a potentially powerful rally.

Notably, Bitcoin has tended to reach new record highs within six months of each halving event, the most recent of which occurred in April.

Spot Bitcoin ETF demand from institutional investors has surged in recent days, with investors funneling over $1.2 billion into these ETFs in a four-day span between last Wednesday and this Monday, according to Farside.

Bitcoin Price Market Trends Strengthen

Bullish sentiment in the Bitcoin market is heating up.

CoinGlass data reveals that the funding rate for leveraged long BTC futures has climbed above 0.20%, the highest level in over six months.

This sharp increase in funding rates points to a surge in demand for leveraged long BTC positions, with open interest reaching nearly $43 billion on Tuesday—a jump of almost $6 billion in just four days.

While some analysts caution that this leverage build-up could risk a market reversal or “long squeeze,” sentiment remains heavily bullish.

Given the fundamental support from recent economic conditions and favorable political sentiment, a major reversal appears unlikely at this time.

Chart analysis supports this outlook as well. Bitcoin’s weekly chart shows a bullish breakout from a flag pattern in play since March, suggesting that the next phase of the bull market is underway.

On the daily chart, Bitcoin has surged above all major moving averages, each trending upward.

Bullish Market Sentiment Drives Demand for Bitcoin Futures

Bitcoin’s technical indicators further highlight the strength of the current rally.

Recently, Bitcoin’s 14-day Relative Strength Index (RSI) moved into overbought territory.

While for many assets this might signal a sell-off, for Bitcoin, it can act as a buy signal in a trending bull market.

Recent examples from October 20, 2023, and February 8, 2024, show that such RSI levels can coincide with further price gains when Bitcoin is in a strong uptrend.

With current momentum and supportive market fundamentals, Bitcoin remains well-positioned to reach $100,000 by the end of the year if bullish conditions persist.