As the world’s largest cryptocurrency is headed towards setting another all-time high, investors expect a potential breakout soon. It is now trading at around $72,230 and an addition of $1475 per token will mark its ATH, which is likely to happen in the next few hours.
In the past 24 hours, BTC showed a $53.65 billion trading whereas the BlackRock Bitcoin ETF (IBIT) alone had around $3.3 billion volume, resulting in a total inflow of $870 million, the highest since June 05, 2024. This surge had an effect on other cryptocurrencies, showing signals for an altcoin boom.
The attention Donald Trump has been getting in the middle of the US Election frenzy also helped Bitcoin’s uptrend, as the institutional investors anticipate new monetary policies after the Presidential power shift. However, the Fear & Greed index is at 77, which means extreme greed. According to various crypto analysts, this spike is mainly because of the FOMO, and a sudden correction is expected to happen soon.
What Caused Bitcoin’s Surge?
After it achieved a new record of $73,750.07 per coin on 14th March 2024, BTC has been trading within a consistent support and resistance level for the last 8 months. This surge was mainly attributed to the completion of halving in April 2024. Usually, a steady flow for a specific period results in a breakout, as evidenced in the historical data. Based on this pure on-chain analysis, we can expect a repetition, and this is one of the primary reasons for the huge inflow of funds.
This year’s regulatory developments also aided BTC to surge. From the initial days of launch itself, BTC had clashes with the governments and it was until recently the regulatory commissions softened their approach. Bills, rules and regulations regarding crypto started emerging this year, helping the market to soar. Another major reason is the US Election which is scheduled to occur on 5th November 2024.
The crypto environment is largely in favour of Donald Trump, as he created an identity of a “crypto candidate”, with support from giants like Elon Musk. The speculations about his victory and potential heavy regulatory shifts in favour of BTC gathered early investors who could benefit from the shift. However, BTC is expected to bleed when Trump fails. The US Election results date is not yet officially confirmed.
BTC’s FOMO and Greed Signal a Correction
The Fear & Greed Index’s revelation of extreme greed is something that should be worried about. Most of the recent retail investors are driven by FOMO (Fear of Missing Out) and those who invest in these resistance levels will lose if BTC falls down to its support levels.
The possibility of a major correction is very low, and despite short dips, BTC will surge at least till the 5th of November. However, historical data reveals the high volatility of BTC to move both upward and downward in totally unexpected conditions. But this will only affect the seasoned and daily traders. Every time BTC fell, it rebounded stronger than ever, which made it a safe asset for long-term HODLing.
How to Navigate the BTC in Uncertain Conditions?
Obviously, there are two possibilities if it reaches new ATH; The coin will break out to radical heights or it will be doomed to a bear market. The market sentiment is in support of a bull run, with a small percentage of traders expecting a correction to around $65K.
As we said earlier, the best way to avoid these short-term corrections and uncertainties is to HODL the BTC for the long term. BTC has been here for around 15 years, and if we divide its age into 3, every 5 years witnessed the surge to impressive heights.
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Bitcoin Is Now Targeting A New All-Time High After Crossing $73,000
