Why Bitcoin Price is Up Today? Will October’s Bullish Momentum Continue?

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Bitcoin (BTC) price rallied 5 percent in the past 24 hours to revisit above $71k for the first time since early June this year. The flagship coin is now retesting the crucial resistance range between $71k and $73k, its all-time high (ATH) established earlier this year.

The notable Bitcoin price spike in the past 24 hours also impacted the altcoin industry, leading to a 3 percent surge in crypto’s total market cap to about $2.51 trillion on Tuesday, October 29, during the early Asian session. As a result, over $241 million was liquidated in the past 24 hours, mostly involving short traders from Binance and OKX exchanges.

Factors Fueling Today’s Bitcoin Pump

High Demand from Whale Investors Amid Short Squeeze Impact

Today’s Bitcoin pump above $71k was heavily influenced by the high demand from whale investors seeking to hedge against the macroeconomic uncertainties and ongoing fiat devaluation due to wars. According to the latest market data, the supply of Bitcoin on centralized exchanges declined by over 7k in the past 24 hours.

The US spot BTC ETF issuers, led by BlackRock’s IBIT, are the largest buyers of Bitcoin. On Monday, the US spot BTC ETFs registered more than $479 million in net cash inflow.

Following a notable liquidation of short traders in the past 24 hours, the majority of investors have since turned bullish thus triggering short squeeze impacts. The rise of short squeeze impact in the Bitcoin market has since bolstered the impact of whale traders.

Favoring Technical Aspects

According to a popular trader Peter Brandt, Bitcoin price has successfully closed above a crucial falling logarithmic trend. Additionally, Brandt noted that Bitcoin price has confirmed a new rising trend after rallying above July’s peak.

With the daily 50 and 200 Moving Averages (MAs) having formed a golden cross, Brandt is confident that Bitcoin price is aiming for $94k in the near term. 

Shifting Macroeconomic Outlook

As the bullish October approaches the end in the next 72 hours, the crypto market has gained more confidence as momentum builds across the industry. Bitcoin’s bullish momentum has been attempting to follow that of Gold, which is in price discovery.

Ahead of next week’s US 2024 presidential and congressional elections, the most favored candidate, Donald Trump, by the crypto community has been leading by a huge margin.  Meanwhile, most Wall Street analysts predict that the U.S. Fed will cut its benchmark interest rate next week to further bolster the country’s economic outlook.