Throughout the month of October, Bitcoin [BTC] has witnessed a series of positive developments, setting the stage for a potential surge in its price and the establishment of new milestones. The increased accumulation of Bitcoin during this period has played a pivotal role in triggering a significant breakout pattern.
The formation of an extended bullish flag post a remarkable rally in the initial quarter of 2024 has been a defining feature of Bitcoin’s recent price movement. This pattern, in effect since March, has been characterized by a progression of descending support and resistance levels.
Bitcoin’s recent breakthrough above the resistance line and its ability to sustain a position above $66,000 signaled a newfound strength in its market performance.
The bullish momentum witnessed in the past five days has not only validated the breakout but also propelled Bitcoin towards its all-time high (ATH) of $73,777, with the latest surge peaking at $73,620.
Anticipating the Next Significant Driver for Bitcoin
With the U.S. elections looming on the horizon, the impact of the outcome on Bitcoin’s price trajectory is poised to be substantial. This correlation was previously highlighted in July, with Bitcoin sentiment closely tied to the stance of presidential candidates on cryptocurrencies.
The prevailing outlook positions Trump as the candidate with the most favorable stance towards cryptocurrencies, hinting at a potential positive turn in Bitcoin’s price trajectory if he secures victory. Conversely, a win for Harris might not elicit a similar bullish response from Bitcoin.
In the wake of the recent rally, uncertainties have resurfaced, with the price encountering resistance near its previous ATH. Notably, on-chain data indicates a trend of significant profit-taking by large holders.
An influx of 3,990 BTC out of large holder accounts was recorded between October 26 and 30, contrasting with an inflow of 2,020 BTC within the last 24 hours.
Despite the profit-taking activity among large holders, the overall market sentiment remains predominantly bullish, as evidenced by the absence of immediate sell pressure following the recent price surge.
Nevertheless, it is anticipated that heightened levels of volatility will characterize Bitcoin’s future price movements.