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Bitcoin on the Brink of a Breakout: 7 Reasons Why a Bull Run is Likely

Bitcoin poised for a surge: 7 reasons for optimism

Bitcoin (BTC), the dominant cryptocurrency, is exhibiting signs of a potential breakout, according to analyst Miles Deutscher. Historically, October has been a bullish month for BTC, and recent trends suggest that the cryptocurrency is on the verge of a significant upward movement. Just in the past week, Bitcoin’s price has surged over 13%, nearing its all-time high of $73,700 set in March of this year.

Factors fueling the bullish outlook

Deutscher highlights several key factors underpinning the bullish sentiment surrounding Bitcoin:

    1. Consolidation above critical support levels: Bitcoin has been consolidating above crucial support levels throughout the year, setting the stage for potential expansion. Despite past failed breakouts, the analyst believes the current environment could trigger a substantial price increase.
    1. Low retail investor participation: Many retail investors remain sidelined, as indicated by Bitcoin’s current ranking on Coinbase and declining Google search interest. This suggests the ‘fear of missing out’ (FOMO) sentiment hasn’t fully ignited yet.
    1. Increased global liquidity: The macroeconomic landscape favors Bitcoin’s potential for further gains. Elevated global liquidity—currently at its highest level in three years—has historically had a positive impact on Bitcoin’s price.
    1. Positive correlation with equity markets: As equity markets recover, Bitcoin often follows suit, exhibiting a close correlation with the S&P 500.
    1. Supply squeeze brewing: Bitcoin’s supply on exchanges has reached an all-time low, suggesting a potential supply squeeze. This indicates fewer BTC are available for trading, potentially driving prices higher as demand increases.
    1. Favorable US election outcome: The upcoming US presidential election adds another layer of complexity to the market. Deutscher speculates that a victory for former President Donald Trump could lead to favorable market reactions, with Bitcoin potentially becoming a cornerstone of US financial stability. Trump has pledged to make Bitcoin a reserve asset for the country, aiming to reduce the $35 trillion national debt, further supported by pro-crypto Senator Cynthia Lummis.
    1. Seasonal bullishness: The period from October to April 2025 is traditionally considered a ‘boom period’ for cryptocurrencies, according to Deutscher.

While Bitcoin needs to break out of its current range—potentially facing resistance around $70,000—Deutscher believes this breakout is likely, particularly given the substantial short interest in Bitcoin. At the time of writing, BTC is trading at $66,940, down 1.5% in the 24-hour time frame, as it has encountered significant resistance at the $68,000 level, preventing it from tackling the biggest resistance yet at $70,000.

The confluence of these factors suggests that Bitcoin is poised for a potentially significant upward movement. As the market unfolds, investors and traders will be closely watching to see if these bullish indicators translate into a sustained breakout.

**Disclaimer:** This article is intended for informational purposes only and does not constitute financial advice. Investing in cryptocurrencies carries significant risk. Conduct thorough research and consult with a qualified financial advisor before making any investment decisions.

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