Bitcoin Price Rises Amid Positive Market Sentiment

On Monday, October 7, Bitcoin saw a price increase for the second consecutive day as traders showed a renewed appetite for risk. Bitcoin surged to an intraday high of $64,000, marking a 6.62% rise from last week’s lowest point. This rebound occurred despite a decline in American equities, with the Dow Jones, S&P 500, and Nasdaq 100 dropping by over 0.20% in early trading.

Some crypto analysts and investors remain optimistic about Bitcoin’s prospects. MetaPlanet, a notable Japanese company, has recently become a significant buyer of Bitcoin, adding coins worth $6.7 million to its reserves. It now owns 530 coins valued at over $33 million, following the trend set by MicroStrategy, the largest Bitcoin holder with 252,220 coins. Other major holders include Marathon Digital, Riot Platforms, and Block.

Analysts Predict Further Bitcoin Gains

Michael van de Poppe, a well-known crypto analyst, shared his bullish outlook on Bitcoin with his 728,000 followers. He anticipates that Bitcoin will retest the all-time high of $73,800. Van de Poppe expects Bitcoin to test $62,000 and then rally to between $65,000 and $66,000. A break above this level could lead to a new all-time high.

Bitcoin has held the crucial support area around $60K and bounced upwards. I’m expecting some lower timeframe retests at $62K, through which we will test $65-66K later this week. Breakout above there = new all-time high test.

Bitcoin’s recent rebound also coincided with a significant rise in futures open interest. Data from CoinGlass indicates that open interest surged to over $34 billion, its highest level since October 1. A higher open interest figure is often considered a positive sign for the cryptocurrency.

Upcoming Catalysts for Bitcoin

This week, Bitcoin traders will closely watch the Federal Reserve minutes on Wednesday and the US inflation data on Thursday. Signs of falling inflation could lead to a more dovish Federal Reserve stance, which would be favorable for Bitcoin and other risk assets.

Technical Analysis

According to the daily chart, Bitcoin has faced strong resistance, marked in purple, which connects the highest swings from March, May, June, July, and September. This trendline represents the upper side of the falling broadening wedge chart pattern. In technical analysis, this pattern often leads to a bullish breakout. Additionally, Bitcoin has climbed above the 50-day and 200-day Exponential Moving Averages.

Given these factors, there are rising odds that Bitcoin will experience a bullish breakout and retest its all-time high. To achieve this, Bitcoin will likely need to overcome the descending trendline and psychological levels at $70,000 and $72,000.

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