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Bitcoin (BTC), the largest cryptocurrency by market capitalization, is showing signs of a potential breakthrough, according to analyst Miles Deutscher.
Historically, October is a strong month for BTC, and recent trends suggest that the cryptocurrency may be on the verge of a substantial decline. upward movement. Over the past week alone, Bitcoin prices have surged more than 13%, approaching the all-time high of $73,700 set in March of this year.
Increased Global Liquidity And Low Supply
German notes that Bitcoin has been consolidating above a critical support level for most of the year, positioning it for potential expansion. Despite many failed breakouts in the past, leading to general distrust among traders, analysts believe that these conditions could create opportunities for significant price increases.
Many retail investors remain absent, as shown by Bitcoin’s current ranking on Coinbase and declining Google search interest in the cryptocurrency. QThis may indicate that the market force known as Fear of Missing Out (FOMO), has not yet occurred among investors.
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The macroeconomic backdrop also supports Bitcoin’s potential for further gains. Increased global liquidity—which is now at a three-year high—has historically impacted Bitcoin prices positively.
Deutscher also emphasized that when equity markets begin to recover, Bitcoin tends to follow that trend, often closely correlating with the S&P 500. Additionally, Bitcoin also supply on the exchange has hit an all-time low, indicating that a supply squeeze may be imminent.
Analysts argue that this trend indicates that less BTC is available to trade, which could push prices higher as demand increases.
October to April as a ‘Boom Period’ for Bitcoin
Deutscher also emphasized in his analysis the upcoming US presidential election, which he said adds a layer of complexity to the market. Analysts speculate that a victory for former President Donald Trump could elicit a favorable market reaction, with Bitcoin potentially positioned as “a pillar of US financial stability.”
The Republican candidate has made a number of promises, the most prominent of which is a plan to create Bitcoin reserve assets for the country, with the goal of using it to reduce the $35 trillion national debt, which was further supported by pro-crypto Senator Cynthia Lummis.
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Seasonality also plays a role, according to analysts. Deutscher explained that the period October to April 2025 is traditionally seen as a “boom period” for crypto currency.
Although Bitcoin would need to break out of its current range—potentially facing resistance around $70,000—Deutscher believes a breakout is possible, especially considering the large short-term interest in Bitcoin.
At the time of writing, BTC is trading at $66,940, down 1.5% in a 24-hour period, as it has faced significant resistance at the $68,000 level, preventing it from clearing the biggest resistance at $70,000.
Featured image from DALL-E, chart from TradingView.com