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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 poised for a significant surge. upward movement. In the last week alone, the price of Bitcoin has surged more than 13%, closing in on its all-time high of $73,700 set in March of this year.
Increased global liquidity and low supply
German Remarks that Bitcoin has consolidated above critical support levels for much of the year, positioning it for potential expansion. Despite numerous failed breakouts in the past, which led to general distrust among traders, the analyst believes that this environment could create an opportunity for a significant price increase.
Many retail investors remain on the sidelines, as indicated by Bitcoin’s current ranking on Coinbase and declining Google search interest in the cryptocurrency. TThis May suggests that the market force known as fear of missing out (FOMO) has not yet taken hold among investors.
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The macroeconomic backdrop also supports Bitcoin’s potential for further gains. The increase in global liquidity – now at a three-year high – has historically positively influenced the price of Bitcoin.
Deutscher also points out that as stock markets begin to recover, Bitcoin tends to follow suit, often correlating closely with the S&P 500. stock market supply has reached an all-time low, suggesting a supply squeeze may be imminent.
The analyst says this trend indicates that less BTC is available for trading, which could drive prices higher as demand increases.
October to April: “boom period” for Bitcoin
Deutscher also highlighted the upcoming U.S. presidential election in his analysis, which he said adds another level of complexity to the market. The analyst assumes that a victory of former President Donald Trump could lead to favorable market reactions, with Bitcoin potentially positioned as “a pillar of American financial stability.”
The Republican candidate has made a number of promises, the most notable being his intention to manufacture Bitcoin. a reserve asset for the country, with the aim of using it to reduce the national debt by $35 trillion, further supported by pro-crypto senator Cynthia Lummis.
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Seasonality also plays a role, according to the analyst. Deutscher explains that the period from October to April 2025 is traditionally considered a “boom period” for businesses. cryptocurrencies.
With Bitcoin expected to break out of its current range – potentially facing resistance around $70,000 – Deutscher believes this breakout is likely, especially given the substantial short-term interest in Bitcoin.
At the time of writing, BTC is trading at $66,940, down 1.5% over a 24-hour period, as it encountered significant resistance at the $68,000 level, preventing it from tackling the biggest resistance ever at $70,000.
Featured image of DALL-E, chart by TradingView.com
