(Kitco News) – Crypto bulls were out in full force in early trading on Tuesday as the post-halving upcycle has officially started, with Bitcoin (BTC) tapping $72,000 and looking poised to make a run at a new all-time high.
“The crypto market cap rose by 4.7% to $2.4 trillion in the last 24 hours, supported by a surge in top coins,” noted Alex Kuptsikevich, chief market analyst at FxPro. “These are the market’s highest levels since late July. Back then, the market stalled around these levels and soon turned lower. This time, the trend is more bullish, as the market has been in an uptrend since early September.”
“With a gain of around 5%, Bitcoin is generally moving with the market, behind Ethereum’s (ETH) 5.5% rise, Doge’s 16% jump, and Bitcoin Cash’s 10% rise,” he added. “However, with a price close to $71K, BTCUSD is less than 4% below its all-time high. The first cryptocurrency has spent less than 72 hours in total above its current level.”
“Technically, Bitcoin has given several bullish signals, from the ‘golden cross’ on 27 October to breaking above previous highs and entering a Fibonacci extension pattern,” Kuptsikevich concluded.
Data provided by TradingView shows that BTC is now trading at $71,600, just 3% below its all-time high after a slight pullback following its rally to $72,000.
BTC/USD Chart by TradingView
“On October 29, 2024, Bitcoin surged past $71,000 once again, driven by several key factors shaping the market environment,” said Ryan Lee, Chief Analyst at Bitget Research.
“One significant driver has been the demand for spot Bitcoin ETFs,” he said. “The recent price spike is closely tied to inflows into these ETFs, with data showing that U.S. Bitcoin ETFs attracted $2.4 billion in net inflows over just six days. This figure marks a new peak since the ETF’s launch in January 2024, and this influx of capital has provided strong buying power and support for the Bitcoin market.”
He added that the second factor influencing Bitcoin’s price is the upcoming U.S. presidential election.
“With the election drawing near, the market is anticipating that the future administration, whether led by Trump or Harris, might adopt a friendlier stance toward the cryptocurrency sector,” Lee said. “Both candidates have expressed a commitment to providing clearer regulatory frameworks for digital assets, and Trump, in particular, has actively sought support from the crypto community. This political context has further boosted positive market sentiment, adding to Bitcoin’s momentum.”
“Technical indicators have reinforced this upward trend,” he noted. “Recently, Bitcoin’s 50-day moving average crossed above the 200-day moving average, forming a “golden cross” signal, often viewed as the beginning of a bullish phase. Additionally, Bitcoin’s Relative Strength Index (RSI) remains in a positive range, suggesting that the market may continue to break through resistance levels and potentially reach the year’s earlier high of $73,000.”
BTC/USD Chart by TradingView
“Together, these factors create a favorable environment for Bitcoin’s price to rise, though short-term volatility in the market remains high,” Lee concluded.
Maria Carola, CEO of cryptocurrency exchange StealthEX, said there’s a strong possibility that Bitcoin could hit a new all-time high this week.
“As of Oct. 29, BTC is trading at $71,200, holding within a bullish growth channel,” she said in a note to Kitco Crypto. “Moving averages signal a short-term bearish trend, though the recent breakout above the signal lines reflects buyer pressure on Bitcoin and points to potential upward momentum.”
“As a correction test failed with the $70,020 support level, Bitcoin is now moving towards $73,860, a target it could potentially reach by the end of the week,” Carola said.
Like Lee’s analysis, Carola noted, “A supportive factor for BTC/USD growth includes a relative strength indicator test of support. A reversal towards a bearish outlook would require a breakdown below 69,065, indicating continued declines with a target near 65,670. Alternatively, a breakout above $72,500 could affirm continued upward momentum, which will last till the US presidential elections.”
Derivatives traders are also bullish on the possibility of a new ATH, with options traders recently increasing their bets that Bitcoin will hit fresh highs by the end of November. Following the liquidation of nearly $169 million worth of short positions overnight as Bitcoin rallied above $71,000, options due to expire on November 8 now have their highest open interest at the $75,000 strike price, indicating a key market focus area for that period.
At the time of writing, Bitcoin trades at $71,820, an increase of 4.75% on the 24-hour chart.
