Bitcoin (BTC), the largest cryptocurrency by market capitalization, is showing signs of a potential breakout, according to analyst Miles Deutscher.
Historically, October has been a strong month for BTC, and recent trends suggest the cryptocurrency could be on the verge of a substantial rise. upward movement. Last week alone, the price of Bitcoin rose more than 13%, approaching its all-time high of US$73,700, set in March this year.
Increased global liquidity and low supply
German notes that Bitcoin has been consolidating above critical support levels for much of the year, positioning it for potential expansion. Despite numerous failed breakouts in the past, which have led to general distrust among traders, the analyst believes this environment could create an opportunity for a significant price increase.
Many retail investors remain sidelined, as indicated by Bitcoin’s current ranking on Coinbase and Google’s declining search interest in the cryptocurrency. TThis may suggest that the market force known as fear of missing out (FOMO) has not yet taken hold among investors.
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The macroeconomic scenario also supports Bitcoin’s potential for further gains. Increasing global liquidity – now at its highest level in three years – has historically positively influenced the price of Bitcoin.
Deutscher also emphasizes that as equity markets begin to recover, Bitcoin tends to follow suit, often correlating closely with the S&P 500. Furthermore, Bitcoin tends to follow suit. supply in bags has hit an all-time low, suggesting a supply squeeze may be imminent.
The analyst claims that this trend indicates that less BTC is available for trading, which could drive up prices as demand increases.
October to April as ‘boom period’ for Bitcoin
Deutscher also emphasized in his analysis the upcoming US presidential election, which he believes adds another layer of complexity to the market. The analyst speculates that victory of former president Donald Trump could lead to favorable market reactions, with Bitcoin potentially positioned as “a pillar of US financial stability.”
The Republican candidate has made a number of promises, the most notable being plans to make Bitcoin a reserve asset for the country, with the aim of using it to reduce the US$35 trillion national debt, further supported by pro-crypto senator Cynthia Lummis.
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Seasonality also influences, according to the analyst. Deutscher explains that the period from October to April 2025 is traditionally seen as a “period of expansion” for cryptocurrencies.
While Bitcoin needs to break out of its current range – potentially facing resistance around $70,000 – Deutscher believes such a breakout is likely, especially given the substantial short interest in Bitcoin.
At the time of writing, BTC was trading at $66,940, down 1.5% in the 24-hour period, as it encountered significant resistance at the $68,000 level, preventing it from facing higher resistance so far at $70,000.
Featured image of DALL-E, chart from TradingView.com