Bitcoin (BTC), known as the largest cryptocurrency by market capitalization, is currently exhibiting promising signs of a potential breakout. Analyst Miles Deutscher suggests that Bitcoin’s historical performance in October, coupled with recent trends, indicates a substantial upward movement might be on the horizon.
Over the last week, Bitcoin’s price has impressively surged over 13%, nearing its all-time high of $73,700 reached in March earlier this year. This surge has sparked renewed interest and speculation about Bitcoin’s future trajectory.
Increased Global Liquidity and Low Supply
Deutscher highlights that Bitcoin has been consistently consolidating above crucial support levels throughout the year, setting the stage for potential expansion. Despite several unsuccessful breakouts in the past, which have led to skepticism among traders, the current market conditions might present an opportunity for a significant price increase.
Interestingly, many retail investors remain on the sidelines, as evidenced by Bitcoin’s ranking on Coinbase and the declining Google search interest in the cryptocurrency. This suggests that the market phenomenon known as Fear of Missing Out (FOMO) has yet to take hold among investors, providing a unique setup for future market dynamics.
Macroeconomic Backdrop and Market Influences
From a macroeconomic perspective, the scenario also favors Bitcoin’s potential for further gains. Global liquidity, now at its highest level in three years, has historically had a positive impact on Bitcoin’s price movements. As equity markets start to recover, Bitcoin often follows suit, typically correlating closely with indices like the S&P 500.
Moreover, Bitcoin’s supply on exchanges has hit an all-time low, hinting at a possible supply squeeze. This trend suggests that fewer BTC are available for trading, which could drive prices higher as demand escalates.
October to April: A ‘Boom Period’ for Bitcoin
Deutscher also highlights the significance of the upcoming US presidential election, adding another layer of complexity to market predictions. A potential victory for former President Donald Trump could trigger favorable market reactions, positioning Bitcoin as a reliable pillar of US financial stability. The Republican candidate has made ambitious promises, including making Bitcoin a reserve asset to help reduce the national debt, supported by pro-crypto Senator Cynthia Lummis.
The analyst also points out the impact of seasonality on the market. Deutscher explains that the period from October to April 2025 is traditionally viewed as a “boom period” for cryptocurrencies. While Bitcoin needs to break out of its current range, potentially facing resistance around $70,000, Deutscher believes this breakout is plausible, especially given the significant short interest in Bitcoin.
At the time of writing, BTC is trading at $66,940, experiencing a 1.5% decline over the past 24 hours, as it encounters substantial resistance at the $68,000 level. This resistance is preventing Bitcoin from tackling the critical threshold at $70,000.
