After rising more than 7 percent since early October, the price of Bitcoin (BTC) is about to enter the next phase of the bullish wave. In Heikin Ashi’s monthly time frame, the flagship coin is about to close the first month on a bullish wave, following a period of retesting the breakout from the 2021 all-time high (ATH).
Moreover, Bitcoin price has consistently closed above the crucial support range between $59,000 and $61,000 since the August 5 crypto market crash.
Why bet on a bullish breakout for Bitcoin Ahead
Bitcoin’s price is expected to reflect the continued rally in major stock indexes and gold in the near term, after consolidating for over 31 weeks. According to the latest market data, Bitcoin’s open interest (OI) has risen along with the underlying asset to a multi-month peak of over $37 billion.
As a result, Bitcoin supply on centralized exchanges has continued to decline in recent weeks, fueled by institutional investors. Earlier today, Metaplanet Inc. (Tokyo:3350) announced that it now owns more than 1,000 Bitcoins. BlackRock’s IBIT has continued to aggressively accumulate more Bitcoins in the recent past.
Meanwhile, Bitcoin’s price action will be heavily influenced by next week’s US elections and FOMC data.
Important levels to look ahead to
About 72 hours before the end of October, Bitcoin price encountered a significant resistance level at around $69,000, the same level that resulted in a reversal in July. With the Bitcoin price closing on a Doji candlestick last week, crypto analyst Alan Santana believes that short-term bearish sentiments have a better chance before a rally towards a new ATH is in store.
From a technical point of view, the risk of a further decline towards $52,000 will increase significantly if the Bitcoin price loses the support range between $61,000 and $59,000 in the coming weeks. However, a potential close above $72,000 in the near term will push the flagship coin above $80,000.
