Bitcoin’s bullish momentum has swept through the entire crypto market this month, driving gains across all sectors in October. The pioneer cryptocurrency has surged by over 20%, currently consolidating around $34,250 as of the time of this report. While it reached a new yearly high at $35,000, it struggled to break above that level.
This surge in Bitcoin’s value has attracted growing optimism in the crypto market, leading institutional investors to make their most significant capital allocation into the digital asset market in over a year. Despite Bitcoin nearing an 18-month high, its recent gains have had a substantial impact on investor returns.
In terms of technical analysis, Glassnode data indicates promising signs. The percentage of in-profit Bitcoin addresses is at an 18-month high of 81.1%, though the absolute numbers have yet to match this performance. A Bullish Pennant pattern has emerged with BTC attempting to break higher, indicating a potentially positive trend.
Kaiko, an analytics platform, has noted a significant change in the market structure for the first time in the last six months. Despite a previous decrease in volatility and a slowdown in trading volume over the summer, the market dynamics shifted in the last two weeks, driven by a rumor about the fictitious approval of a Bitcoin spot ETF associated with BlackRock.
Kaiko observed that the market seemed indifferent to Bitcoin’s price decline as it reached its highest point since May 2022. Despite increased trading activity, Bitcoin’s liquidity remained constant, with bids and asks on order books within 1% of the mid-price unchanged at around $100 million over the past two weeks.
A potential catalyst for higher prices is the 50-/200-day bullish crossover or Golden Cross, viewed by some technical analysts as signaling a bullish trend continuation. Price action trends suggest that Bitcoin’s upward momentum will likely persist as long as it stays above $32,832, with $30,000 as the ultimate goal if a sell-off is confirmed.
CoinShares, a digital asset manager, reported that institutions invested $326 million in cryptocurrency investment products last week, marking the highest weekly inflow since July 2022. This surge in investor confidence is tied to expectations of the US Securities and Exchange Commission approving a Bitcoin exchange-traded fund based on spot transactions. CoinShares noted that 90% of institutional inflows into BTC were driven by the anticipation of a Bitcoin ETF.
Despite the positive outlook for Bitcoin, the weekly inflow only ranks as the 21st largest on record, indicating some investor caution. CoinShares expressed confidence that a spot-based ETF is likely to materialize soon, marking a significant regulatory shift for the industry.
Cathie Wood of Ark Invest shares this optimism, believing that the price of Bitcoin could reach $1 million by 2030, with BTC ETF approval serving as the potential catalyst for such a surge.
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