Bitcoin (BTC), the world’s largest cryptocurrency by market capitalization, is receiving a lot of attention from the crypto community following its impressive price rise over the past 24 hours. With an increase of over 6%, BTC reclaimed the $66,000 level for the second time since July 2024.
Reason why Bitcoin price is increasing
The potential reason for this massive bullish momentum is the upcoming presidential election in the United States. According to data shared by trading firm QCP Capital, the current price action of Bitcoin is similar to those observed before the 2016 and 2020 US elections. During this period, BTC saw a significant rise.
QCP Traders said: “If we go back to 2016, BTC traded in a very tight range for over 3 months. It was only three weeks before the US election day that BTC started its rally from $600 and eventually doubled its price in the first week of January.
They further added: “Similarly, in 2020, BTC was stuck in a boring range for six months and only started rebounding from $11,000 just three weeks before US election day, for reaching a high of $42,000 in January. »
While adding the bullish historical pattern and positive performance from October, traders added: “Today’s rally definitely gave the market a glimmer of hope, just as October’s optimism s ‘was fading.”
Bitcoin Technical Analysis and Upcoming Levels
According to expert technical analysis, Bitcoin appears bullish but is currently facing strong rejection at a crucial resistance level of $66,200. The last time BTC reached this level, its price suddenly fell by more than 10%. If BTC breaks this hurdle and closes a daily candle above the $68,000 level, there is a good chance that it will reach its all-time high.
Currently, BTC is trading above the 200-day exponential moving average (EMA), which indicates an upward trend. Traders and investors use this indicator to determine whether an asset is in an uptrend or downtrend.
On-chain bullish metrics
Bitcoin’s positive outlook is further supported by on-chain metrics that suggest bulls are back in the market and could support this bullish rally. According to on-chain analytics firm Coinglass, BTC’s Long/Short ratio currently stands at 1.10, the highest since September 2024. This record rise in the ratio suggests strong bullish sentiment among traders.
Additionally, BTC future open interest increased by 10% in the last 24 hours and 3.7% in the last four hours. This growing open interest indicates growing interest from investors and traders, potentially driven by the upcoming election.
Combining these on-chain metrics with technical analysis, it appears that bulls are currently dominating the asset and could lead the rally to continue in the coming days, similar to historical trends.
