Key Points
- Bitcoin’s bullish momentum has led to a major pattern breakout, suggesting possible new highs in the coming months.
- The U.S. elections could significantly impact Bitcoin’s price action, with Trump being viewed as the most pro-crypto candidate.
Bitcoin enthusiasts have been witnessing a strong bullish trend, which has driven the cryptocurrency’s price closest to its all-time high (ATH). This optimism is particularly high as the U.S elections are fast approaching.
October: A Good Month for Bitcoin
October has proven to be a fruitful month for Bitcoin (BTC). One of the reasons for this is the increased accumulation that has been observed throughout the month, resulting in a significant pattern breakout. This could potentially pave the way for exciting price action and new highs in the upcoming months.
Following its remarkable rally in the first three months of 2024, Bitcoin formed a long bullish flag. This pattern, characterized by descending support and resistance bands, has been observed since March. Bitcoin’s recent surge above the resistance line was successful at $66,000, and the cryptocurrency has continued to show strength above this level.
The Bullish Flag Pattern Breakout
The bullish momentum over the last five days confirmed the breakout, allowing Bitcoin to soar close to its historic ATH of $73,777. The recent upside peaked at $73,620. The bullish flag pattern breakout has finally occurred for the first time in almost seven months. This suggests that the price could be on the verge of another major move in favor of the bulls, meaning Bitcoin could be nearing price discovery and new all-time highs.
The outcome of the upcoming U.S. elections is expected to significantly influence Bitcoin’s price action. This was evident in July when sentiment around presidential candidates and their stance on crypto was high. Current President Trump is considered the most pro-crypto candidate, implying that a win for him could have a positive impact on Bitcoin’s price. Conversely, a win for Harris might not yield a similar outcome for Bitcoin.
Despite the recent rally, uncertainty has made a return. The price has shown resistance within the previous high range. Interestingly, on-chain data indicates that large holders have started taking profits. A sizeable increase in the amount of Bitcoin flowing out of large holder accounts has been observed recently. Nevertheless, the current sentiment suggests more bullish expectations moving forward, as the recent uptick was not immediately followed by a surge in sell pressure. However, higher levels of volatility are expected to arise in the future.
