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Bitcoin's demand is making a comeback after being pretty quiet since May. Just last week, demand surged by 177,000 BTC in one month, right before we saw a 5% price rally. The price surge is showing no signs of slowing down this week, and some are even predicting it could break past $70,000 in the coming weeks.
Right now, the world's largest crypto is trading at over $67,600, hitting levels we haven’t seen since early August, according to CoinGecko.
But the big question is, can this rally last?
Why $250k bitcoin is more realistic than you think
— bitcoindata21 (@bitcoindata21) October 9, 2024
Technical confluence: Cup and handle + 4.236 fib in the $240-250k area.
Bitcoin divided by Central bank balance sheets (U.S + China +Japan + Europe). To reach the red trendline requires a 4x on bitcoin, assuming that balance… pic.twitter.com/BeKirhXayg
Jonathan de Wet, chief investment officer at Zerocap, seems to think so. In an investor note on Wednesday, he pointed out that Bitcoin’s upward momentum is still going strong.
“We see Bitcoin hitting $70,000 in the coming weeks,” de Wet said, citing a strong technical breakout that's laying the groundwork for more gains.
There are several factors aligning in Bitcoin’s favor right now. Political developments in the U.S. are sparking optimism, with hopes for more crypto-friendly policies.
U.S. Political Climate and Presidential Elections
Republican nominee and former President Donald Trump has promised to make the U.S. a global leader in crypto while ensuring users can keep custody of their own assets.
On the other side, Democratic nominee and current Vice President Kamala Harris has pledged to establish clear regulations for crypto, aiming to balance innovation with proper oversight. Her approach focuses on creating a stable environment for growth while ensuring the industry has the guidelines it needs to thrive.
Trump's proposal to establish a Bitcoin reserve could be a game changer for crypto regulation, according to Anndy Lian, an intergovernmental blockchain expert, in a conversation with Decrypt:
This kind of political support could pave the way for a more favorable regulatory landscape, which would, in turn, boost investor confidence and drive up demand.
Lian also predicts that Bitcoin could hit its all-time high next week, fueled by global monetary policies like major central bank rate cuts that could boost risk assets, including crypto.
However, de Wet pointed out that concerns over China's economic struggles still hang in the air. Issues like rising local government debt, sluggish growth, and weak demand for goods and services could impact the broader market.
China, the world’s second-largest economy, has promised to pump hundreds of billions into its markets through stimulus measures to revive its stock market and boost demand.
Meanwhile, there are growing concerns over geopolitical tensions in the Middle East, given its significant role in global energy production and trade supply chains.
But if BitMex co-founder Arthur Hayes is on the money, traders don’t have much to worry about on that front.
Bitcoin Price Prediction
The key level to watch on the downside is $65,000. If buyers can turn this into solid support, we might see a push toward $70,000. However, sellers are likely to put up a tough fight in the $70,000 to $73,777 range.
A break and close below $65,000 would be the first sign of weakness, which could send the BTC/USDT pair down to the 20-day EMA at $63,417. If the price bounces off the 20-day EMA, the bulls will likely make another attempt to drive the price to $70,000.
But if the 20-day EMA fails to hold, it would indicate the bulls are losing their grip. In that case, the pair could slide further to the 50-day simple moving average at $61,023.
Kataryna Habeliia
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