Bitcoin (BTC) saw a significant price jump during early U.S. trading hours on Tuesday, reaching a high of $67,800, levels not seen since July. At press time, the world’s largest cryptocurrency was trading at $67,500, marking a 3.7% increase over the past 24 hours.
The broader crypto market also experienced gain, however, prominent cryptocurrencies like Solana (SOL) and Cardano (ADA) underperformed compared to BTC.
Analysts are linking Bitcoin’s recent rally to U.S. political developments. Geoff Kendrick, an analyst at Standard Chartered, pointed out that the growing momentum for former president Donald Trump’s candidacy is driving optimism in the crypto market.
According to Polymarket, Trump now holds a 57% chance of winning the 2024 U.S. presidential election. This represents the highest probability since Joe Biden withdrew from the Democratic race. Additionally, Kendrick noted that if Trump wins, there’s a 70% likelihood of a Republican majority in both the House and Senate, further fueling market confidence in a more crypto-friendly environment.
Bitcoin Finds Strong Support Above 200-Day SMA
On the technical side, Bitcoin’s rise above the 200-day simple moving average (SMA) at $63,335 has strengthened its upward trajectory. This level, which Bitcoin reclaimed on October 14, serves as a critical support point. Historically, breaking above the 200-day SMA has led to substantial gains, and Bitcoin has struggled in recent attempts to sustain a rally at this level.
Data from IntoTheBlock shows that the 200-day SMA coincides with a demand zone between $61,770 and $63,728, where approximately 1.1 million BTC were previously bought by 2.5 million addresses. This suggests that Bitcoin is sitting on strong support, and with relatively weaker resistance ahead, the path of least resistance appears to be upward.
