Bitcoin price continued its strong rebound as it rose for three consecutive days, reaching its highest level since July 29.
Bitcoin (BTC), the original cryptocurrency and largest crypto by market cap, retested the psychological level of $68,000, meaning it has jumped by almost 40% from its lowest level in August.
There are rising odds that Bitcoin will continue climbing. For one, the crypto fear and greed index moved from the greed zone of 37 last week to 58. BTC and other cryptocurrencies often rally when there is a sense of greed in the market.
Bitcoin price has also formed a golden cross pattern as the 50-day and 200-day Weighted Moving Averages have made a bullish crossover.
The last time this crossover happened was on Oct. 23 last year, and the coin surged by 120% to its all-time high of $73,800 in March.
The WMA is seen as a better type of moving average than the simple and exponential moving averages because it smooths data by giving more weight to recent movements.
Bitcoin has also formed an inverse head and shoulders pattern and flipped the important resistance point at $66,561, its highest swing on Sept. 27. It also crossed the descending trendline that connects the highest swings since March.
Bitcoin price chart | Source: TradingView
Why Bitcoin price is rising
Bitcoin is rallying for two main reasons. First, the odds of Donald Trump winning the election have risen, with Polymarket placing his probability at 60%.
Trump is seen as a favorable candidate for the crypto industry because of his strong endorsement of the sector. He is a crypto owner with a portfolio worth over $6 million, according to Arkham. He has also launched World Liberty Financial, a crypto project.
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At the same time, studies show that his policies of tax cuts, defense spending, and tariffs could lead to a $7.5 trillion deficit in a decade. This is notable since the U.S. public debt has jumped to over $35.5 trillion. Investors see Bitcoin as a better alternative to the U.S. dollar because it has a supply cap of 21 million coins.
Polymarket odds of Bitcoin reaching a record high rose to 70%.
Bitcoin odds of reaching all-time high | Source: Polymarket
Meanwhile, analysts are optimistic about Bitcoin. Peter Brandt, a popular trader with over 740,000 followers, predicted that the coin has more upside, with his initial target being $73,800, its all-time high.
An inverted expanding triangle has about a 50% chance of working all the way to a measured target
If you say, “50% only, then what benefit are charts,” then you should probably not trade because you lack nuanced understanding of timing and asymmetry between reward and risk pic.twitter.com/0BREq2hN6Q
— Peter Brandt (@PeterLBrandt) October 16, 2024
Other analysts have also delivered positive Bitcoin forecasts. Miles Deutscher, predicted that the next Bitcoin breakout will be much bigger than most expect, followed by fear of missing out. Michael van de Poppe sees more upside in the long term as the Federal Reserve cuts interest rates.
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