- Bitcoin surged past $68,000, signaling a bullish breakout and potential price increase.
- An Ichimoku golden cross and rising fear and greed index indicate strong market momentum.
- External factors, like Trump’s election odds, fuel investor interest in Bitcoin as an inflation hedge.
Recently, Bitcoin (BTC) surged past a key psychological price level at $68,000. This breakout coincides with the formation of an Ichimoku golden cross, another strong bullish signal. After jumping nearly 40% since August’s lows, Bitcoin appears ready for an explosive price increase. Market sentiment and technical indicators suggest a substantial upward trajectory lies ahead.
#Bitcoin Golden Cross! ✨
With a breakout on the weekly timeframe and an Ichimoku golden cross forming, an impulsive move is likely to happen soon. pic.twitter.com/xOHyTVTP5A
— Titan of Crypto (@Washigorira) October 18, 2024
Technical Signals Point to a Bullish Future
Bitcoin’s fear and greed index recently shifted from 37 to 58. A rising fear and greed index often hints at an impending market rally. Additionally, Bitcoin’s price action has created a golden cross pattern. The positive crossover of the 50-day and 200-day Weighted Moving Averages (WMA) indicates bullish momentum.
Historically, this crossover has led to impressive gains. For instance, on October 23 last year, Bitcoin skyrocketed by 120%, hitting $73,800 in March. The WMA offers a clearer trend by placing more weight on recent prices than older ones. This sensitivity helps traders identify potential trends.
Furthermore, an inverse head and shoulders pattern has formed, suggesting even more bullish potential. Flipping the crucial resistance level of $66,561—the highest swing since September 27—adds to the optimism. Crossing the descending trendline connecting the highest swings since March only strengthens this outlook.
External Factors Fueling BTC’s Surge
Bitcoin’s current rally stems from two key factors. First, increasing odds of Donald Trump winning the upcoming election play a significant role. Polymarket currently gives Trump a 60% probability of success.
His strong endorsement of the crypto industry makes him appealing to investors. According to a reliable source, Trump holds over $6 million in crypto and has launched a new project called World Liberty Financial.
Second, growing concerns about U.S. public debt drive interest in Bitcoin. With debt surpassing $35.5 trillion, investors seek alternatives to the dollar. Trump’s proposed policies could lead to a staggering $7.5 trillion deficit in the next decade. Bitcoin’s capped supply of 21 million coins positions this asset as a valuable hedge against inflation.
Odds of Bitcoin reaching a record high now sit at 70%. As momentum builds, traders and investors watch Bitcoin’s next moves closely. For now, BTC’s breakout on the weekly chart as Ichimoku golden cross forms hint at a Parabolic move ahead.