Bitcoin price will likely end October in a bullish narrative, which will extend in the remaining weeks of 2024 amid high-impact news ahead.
After rallying to almost the previous all-time high (ATH), Bitcoin (BTC) price has been retesting a crucial support level of around $72K in the past two days. The flagship coin, with a fully diluted valuation of about $1.51 trillion and a daily traded volume of around 42 billion, has enjoyed bullish sentiment in the recent past fueled by heightened demand from whale investors.
For the first time since March this year, Bitcoin’s daily Relative Strength Index (RSI) surged above the 70 percent level, suggesting the return of the bullish sentiment.
From a technical standpoint, Bitcoin price is on the cusp of entering the much anticipated parabolic phase of the macro bull cycle. Having consolidated in a bearish sentiment in the past seven months, Bitcoin price has gained significant bullish momentum.
As Coinspeaker previously explained, Bitcoin price must consistently close above the resistance range between $71K and $73K and convert it to a support level in order to validate the onset of a parabolic trend.
Bitcoin’s bullish sentiment has a higher chance of happening in the short term fueled by high-impact news from the United States. Notably, the US 2024 elections will conclude by next week, with pro-crypto candidates led by Donald Trump showing higher approval ratings.
Meanwhile, the Federal Reserve is expected to initiate another interest rate cut next week, in a bid to boost the country’s economic outlook.
Bitcoin Whales Shows No Sign of Relenting Soon
The demand for Bitcoin by whale investors has dramatically increased in the past year compared to any other previous crypto bull cycle. According to on-chain data analysis, the supply of Bitcoin on centralized exchanges has declined from over 2.7 million to below 2.3 million in the last seven months, fueled by the approval of spot BTC ETFs in the United States.
In the past four weeks, the US spot Bitcoin ETFs have registered a net cash inflow of more than $5.5 billion, led by BlackRock’s IBIT. On Wednesday, October 30, the US spot Bitcoin ETFs registered a net cash inflow of over $893 million.
BlackRock’s IBIT purchased Bitcoins worth over $872 million, thus currently holding assets worth over $30 billion. The only cash outflow from the US spot Bitcoin ETFs was recorded from Bitwise’s BITB, with an outflow of about $23.8 million.
Milestone was reached ahead of schedule thx to a Herculean run of inflows (esp for bunch of newborn ETFs) https://t.co/6sku5Nf58S
— Eric Balchunas (@EricBalchunas) October 31, 2024
As a result, the US spot Bitcoin ETFs will surpass Satoshi Nakamoto’s holdings of about 1.1 million in the coming days if BlackRock’s IBIT continues at the current rate of acquisition.
Meanwhile, MicroStrategy Inc (NASDAQ: MSTR) intends to raise $42 billion through a $21 billion ATM equity offering and another $21 billion in fixed-income securities.
MicroStrategy, which currently holds over 252K BTCs intends to strengthen its Bitcoin strategy in the near term.
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