After consolidating below $72K for the past seven months, Bitcoin price has accumulated significant bullish sentiment to guarantee a breakout soon.
After an impressive rally last week, Bitcoin BTC $86 320 24h volatility: 1.5% Market cap: $1.71 T Vol. 24h: $34.03 B price has largely reduced its bullish momentum in the last five days. The flagship coin has faced intense resistance of around $69K, which could lead to a short-term correction. However, Bitcoin price has been on a rising trend since the August 5 crypto market crash, characterized by higher highs and higher lows in the daily time frame.
From a technical analysis standpoint, Bitcoin price must consistently close above the support/resistance level of around $68K in the coming days to ensure bullish momentum. If Bitcoin price manages to close above $68K ahead, the next major target will be $72K, the all-time high achieved earlier this year.
According to a popular crypto analyst alias ZAYK Charts, Bitcoin price is on the verge of a 31 percent spike to $85K, following a successful retest of a breakout from a bullish flag.
$BTC In 3D Timeframe,Bullish Flag Breakout is Done & Retesting is in Process✍️
New ATH Soon✅#BTC #BTCUSDT #Bitcoin #Crypto pic.twitter.com/52A5VyIybD
— ZAYK Charts (@ZAYKCharts) October 25, 2024
Factors That Will Lead to Bullish Breakout for Bitcoin
On the top list, Bitcoin’s bullish sentiment is bolstered by the high demand from whale investors. According to an on-chain study conducted by market intelligence platform Santiment, Bitcoin whale addresses with more than 100 BTC coins have increased by nearly 300 in the past two weeks.
During the same period, retail traders have accelerated the rate of Bitcoin dump, whereby the number of wallets with under 100 BTC decreased by 20,629. As a result, Santiment concluded that a bullish outcome is inevitable based on the on-chain analysis.
During the past week, the supply of Bitcoin on centralized exchanges declined by more than 40K units to around 2.39 million at the time of this writing. The notable decline in Bitcoin’s supply on centralized exchanges is largely attributed to the rising demand from spot BTC ETFs in the recent past.
According to the latest market data, BlackRock’s IBIT continued with its cash inflows, whereby the fund registered a net cash inflow of $165 million on Thursday. As a result, the US spot BTC ETFs have registered a net cash inflow of nearly $3 billion during the past three weeks.
In an SEC filing late this afternoon, Microsoft disclosed that "Assessment of Investing in Bitcoin" is currently proposed and will be a voting item for the shareholder meeting on December 10 (the filing notes that "the Board recommends a vote against this proposal").
The filing…
— MacroScope (@MacroScope17) October 24, 2024
According to an SEC filing on Thursday, Microsoft Corporation (NASDAQ: MSFT) is eyeing entry into the Bitcoin market through a shareholders meeting in December, although the board members have recommended voting against the move.
Meanwhile, Japan’s Metaplanet Inc is gradually following in the footsteps of MicroStrategy Inc (NASDAQ: MSTR) to adopt Bitcoin as a hedge against fiat inflation.
Bitcoin price is also likely to follow Gold in a bullish breakout in the near term amid the upcoming US 2024 presidential and congressional elections.
Furthermore, the Federal Reserve is likely to initiate another rate cut on November 7 to spur economic growth in the country. Notably, the US dollar has faced intense competition from the BRICS movement, which has continued to consolidate in its efforts to escalate the de-dollarization process.
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