After gaining more than 7 percent since the beginning of October, Bitcoin (BTC) price is about to kickstart the next leg of the bullish wave. In the monthly Heikin Ashi time frame, the flagship coin is about to close the first month in 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 $59k and $61k since the August 5 crypto market crash.
Why Bet on Bullish Breakout for Bitcoin Ahead
Bitcoin price is expected to mirror the ongoing rally in major stock indexes and gold in the near term after consolidating for more than 31 weeks. According to the latest market data, Bitcoin’s open interest (OI) has spiked in tandem with the underlying value to a multi-month peak of over $37 billion.
As a result, the supply of Bitcoin on centralized exchanges has continued to drop in the past few weeks, fueled by institutional investors. Earlier today, Metaplanet Inc. (Tokyo:3350) announced that it now holds more than 1000 Bitcoins. BlackRock’s IBIT has continued to aggressively accumulate more Bitcoins in the recent past.
Meanwhile, Bitcoin’s price action will heavily be impacted by next week’s US elections and FOMC data.
Key Levels to Watch Ahead
About 72 hours to the close of October, Bitcoin price experienced a significant resistance level of around $69k, the same level that resulted in a reversal in July. With Bitcoin price having closed last week on a Doji candlestick, crypto analyst Alan Santana believes that the bearish sentiments have a higher chance of happening in the near term before a rally towards a new ATH ahead.
From a technical standpoint, if Bitcoin price loses the support range between $61k and $59k in the coming weeks, the risk of a further drop towards $52k will significantly increase. However, a potential close above $72k in the near term will prop the flagship coin above $80k.
