TLDR:
Bitcoin surged above $71,000, marking a 5.4% gain and approaching its all-time high
Over $175 million in short positions were liquidated during the rally
The surge coincides with upcoming US elections, with markets potentially pricing in a Trump victory
Bitcoin ETFs saw record October inflows exceeding $3 billion, with BlackRock’s IBIT leading
Altcoins and meme coins joined the rally, with DOGE and SHIB gaining over 10%
Bitcoin surged past $71,000 on Tuesday, October 29, 2024, marking a 5.4% increase in 24 hours and approaching its all-time high. The cryptocurrency’s latest rally occurred amid strong institutional demand and growing market optimism ahead of the US elections.
Trading volumes doubled from Monday’s levels, reaching $48 billion as Bitcoin broke through the key $70,000 resistance level. The price movement triggered a cascade of liquidations in the derivatives market, with over $175 million in short positions being closed out.
BlackRock’s spot Bitcoin ETF (IBIT) has emerged as a major force in the market, averaging daily inflows of around $200 million over the past ten trading sessions. October’s total ETF inflows have exceeded $3 billion, with IBIT alone receiving more than $300 million in a single day on October 28.
The timing of the rally coincides with the approaching US elections, where prediction markets show Donald Trump with a 66.3% chance of victory. Market analysts, including Tony Sycamore from IG Australia Pty, note that Bitcoin appears to be pricing in expectations of a Trump victory.
Technical indicators have aligned with the price movement. Trader Peter Brandt identified the completion of a five-month inverted expanding triangle pattern, which he interprets as a bullish signal. The pattern suggests an end to the sequence of lower highs and lower lows observed since March.
The rally has extended beyond Bitcoin, with Ethereum gaining 5.3% to move past $2,600. Other alternative cryptocurrencies (altcoins) have joined the upward trend, with Bitcoin Cash rising 8%, Avalanche up 5.86%, and Cardano increasing by 3.96%.
Meme coins have shown even stronger performance, with Dogecoin and Shiba Inu both recording gains exceeding 10%. This broad market movement has pushed the CoinDesk 20 index up by 3.3%.
Data from CryptoQuant reveals increased activity from large traders, particularly on the Binance exchange during Asian trading hours. These “whale” movements have contributed to the buying pressure supporting the current price levels.
Bitcoin’s rally continues, led by Binance exchange
“The current #Bitcoin price is being driven by Binance whales, with sustained inflows of U.S. capital.” – By @mignoletkr
Read more 👇https://t.co/H0a5ChBr66 pic.twitter.com/5d55vNsIBP
— CryptoQuant.com (@cryptoquant_com) October 28, 2024
Options market data indicates growing optimism among traders. Contracts expiring on November 8 show the highest open interest at the $75,000 strike price, suggesting market participants are positioning for further upside potential.
The US spot Bitcoin ETF market has continued to mature, with total inflows since inception reaching $24 billion. BlackRock’s IBIT has established itself among the top three ETF launches of 2024, demonstrating strong institutional acceptance of the asset class.
Bitcoin’s market dominance has approached 60%, a level that some analysts view as healthy for the broader cryptocurrency market. Crypto analyst Miles Deutscher suggests this could set the stage for future altcoin rallies, noting that substantial altcoin movements typically follow periods of Bitcoin outperformance.
The Coinbase Premium Index has shown a reversal, indicating renewed demand from US investors. However, current readings remain below the levels seen during March’s all-time high, suggesting room for potential growth in investor interest.
Chart analysis shows Bitcoin facing resistance in the $71,000-$73,000 range, with a bearish order block forming near March’s all-time high. Breaking through this level could open the path to new price discovery.
Trading volumes and liquidation data suggest strong market conviction behind the move. The surge has eliminated a considerable amount of leveraged positions, with Bitcoin shorts losing $73 million and Ethereum shorts seeing $39 million in liquidations.
