Bitcoin (BTC), the largest cryptocurrency by market capitalization, is showing signs of a potential breakout, according to analyst Miles Deutscher.
Historically, October has been a strong month for BTC, and recent trends suggest that the cryptocurrency may be on the verge of a substantial upward movement. Over the past week alone, the Bitcoin price has surged more than 13%, approaching its all-time high of $73,700 set in March of this year.
Increased Global Liquidity And Low Supply
Deutscher notes that Bitcoin has been consolidating above critical support levels for much of the year, positioning it for potential expansion. Despite numerous failed breakouts in the past, which have led to a general distrust among traders, the analyst believes that this environment may create an opportunity for a significant price increase.
Many retail investors remain sidelined, as indicated by Bitcoin’s current ranking on Coinbase and declining Google search interest in the cryptocurrency. This may suggests that the market force known as fear of missing out (FOMO), has yet to set in among investors.
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The macroeconomic backdrop also supports Bitcoin’s potential for further gains. Increased global liquidity—now at its highest level in three years—has historically influenced Bitcoin’s price positively.
Deutscher also emphasizes that as equity markets begin to recover, Bitcoin tends to follow suit, often correlating closely with the S&P 500. Additionally, Bitcoin’s supply on exchanges has reached an all-time low, suggesting that a supply squeeze may be imminent.
The analyst contends that this trend indicates that fewer BTC are available for trading, which could drive prices higher as demand increases.
October To April As ‘Boom Period’ For Bitcoin
Deutscher also emphasized in his analysis the upcoming US presidential election, which he believes adds another layer of complexity to the market. The analyst speculates that a victory for former President Donald Trump could lead to favorable market reactions, with Bitcoin potentially positioned as “a pillar of US financial stability.”
The Republican candidate has made a number of promises, the most notable being plans to make Bitcoin a reserve asset for the country, with the aim of using it to reduce the $35 trillion national debt, further supported by pro-crypto Senator Cynthia…
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