Bitcoin (BTC) has once again captured the attention of the cryptocurrency community with its impressive price surge over the past 24 hours. Surging over 6%, BTC has reclaimed the $66,000 level for the second time since July 2024.
One potential reason for this significant upside momentum is the upcoming presidential election in the United States. Trading firm QCP Capital has shared data indicating that Bitcoin’s current price action is reminiscent of the periods before the U.S. elections in 2016 and 2020. In both instances, BTC experienced a substantial rally leading up to the election.
QCP Traders pointed out that in 2016, Bitcoin traded within a tight range for over three months before starting its rally just three weeks before the U.S. election, eventually doubling in price by the first week of January. Similarly, in 2020, BTC was range-bound for half a year before rallying from $11K to $42K in the lead-up to the election.
Building on October’s bullish historical pattern and positive performance, traders are optimistic about the current rally, especially as Uptober sentiment was starting to wane.
In terms of technical analysis, Bitcoin is currently facing strong resistance at the $66,200 level. The last time BTC reached this level, it experienced a sharp price decline of over 10%. If Bitcoin manages to break through this hurdle and close a daily candle above $68,000, there is a strong possibility that it could reach its all-time high.
Currently, BTC is trading above the 200-day Exponential Moving Average (EMA), indicating an uptrend. This indicator is often used by traders and investors to determine the direction of an asset’s trend.
Furthermore, on-chain metrics support the bullish outlook for Bitcoin. Coinglass, an on-chain analytics firm, reports that BTC’s Long/Short ratio is at 1.10, the highest since September 2024. This increase in the ratio suggests a strong bullish sentiment among traders.
Additionally, Bitcoin’s future open interest has risen by 10% over the past 24 hours and 3.7% over the past four hours. This uptick in open interest signifies growing interest from investors and traders, potentially driven by the upcoming election.
When combining these on-chain metrics with technical analysis, it becomes apparent that bulls are currently in control of Bitcoin, and the rally may continue in the days ahead, following historical trends.