Bitcoin continues its upward trajectory, reaching $68,388 two days ago, marking its highest level since July 29, 2024. It is currently trading near $68,000. Bitcoin’s price has risen by about 16% since its low on October 10, 2024, when it hit $58,867, and up to the peak of $68,388 recorded two days ago.
Bitcoin has also increased by approximately 60% since the beginning of the year, outperforming the Nasdaq 100 index (which rose around 21%), the S&P 500 index (which rose around 23%), and gold (which increased around 31%). The biggest challenge lies in reaching the all-time high of $73,794, set on March 14, 2024.
Several factors are supporting Bitcoin prices, including but not limited to:
- Market expectations that the Federal Reserve may continue to lower interest rates twice, by 25 basis points at both the November and December meetings this year, which could positively impact cryptocurrencies, particularly Bitcoin, which is denominated in U.S. dollars.
- Increased risk appetite among investors, especially large institutions, as they add Bitcoin to their portfolios, even if in small proportions, for diversification and due to strong optimism about the industry.
- Former President Donald Trump has taken the lead over his competitor Kamala Harris in the latest polls for the upcoming presidential election on November 5 of this year, which supports Bitcoin. This is due to Trump’s pledge to make the United States the cryptocurrency capital of the world.
From a technical standpoint, Bitcoin is trading above the 50-day moving average, which stands at $61,353, and above the 200-day moving average, which is at $63,304. These two moving averages are converging, and any bullish or “golden cross” (where the 50-day moving average crosses above the 200-day moving average) could lead to a continued upward trend for Bitcoin.
The Relative Strength Index (RSI) is currently at 67 points, approaching the overbought zone, indicating positive momentum for Bitcoin.
Please note that this analysis is provided for informational purposes only and should not be considered as investment advice. All trading involves risk.
