Key Points
- Bitcoin (BTC) surpassed the $70K mark, reaching a four-month high due to a liquidity grab.
- Speculators who placed short positions at $70K suffered significant losses, indicating a strong bullish sentiment.
Bitcoin (BTC) recently broke through the $70K barrier, reaching a four-month high of $71.5K.
This surge resulted in an 11% gain for the month of October, effectively breaking out of its consolidation range since March.
Reasons for Bitcoin’s Rise
The recent pump above $70K was partially driven by a liquidity grab.
Considerable liquidity clusters, or short positions, were noted between $69.4K and $70K by BTC analyst CrypNeuvo.
Price action often follows these liquidation levels, which are significantly influenced by market maker moves.
According to Coinglass data, $88 million in positions were liquidated after BTC surpassed the $70K mark.
Those who bet on a price rejection at $70K suffered the most, with nearly $83 million in losses within 24 hours.
This suggests a strong bullish sentiment as the market awaits the results of the upcoming US elections.
US Elections and Bitcoin
With increasing odds of Trump winning the US elections according to prediction sites, Bitfinex analysts believe the elections could create a ‘perfect storm for BTC’.
The convergence of election uncertainty, the “Trump trade” narrative, and favourable Q4 seasonality could create an exciting period for Bitcoin.
Analyst Peter Brandt also shared a similar projection, stating that the move above $70K might trigger the much-anticipated post-halving parabolic rally.
As BTC soared, there was a noticeable increase in demand from US investors, as indicated by the reversal of the Coinbase Premium Index.
On the daily price chart, BTC was in a bullish market structure, only 3.5% away from its all-time high.
However, it hit resistance, and a bearish order block formed at March’s all-time high.
For the short-term uptrend to continue, BTC must clear the $71K-$73K roadblock.
