Bitcoin reaches $73,540, nearing ATH and reviving bullish market sentiment
Bitcoin reaches $73,540, nearing ATH and reviving bullish market sentiment
October 2024, which was traditionally seen with much optimism, has brought several disappointments to the crypto community. However, the month is ending on a bullish note thanks to Bitcoin's strong breakout.
A powerful upward momentum began on Monday, October 28, leading to a breakout of the multi-month resistance level near $71,450 on Tuesday. Following this, Bitcoin reached $73,540, coming very close to the historical maximum of $73,738 achieved on March 14, 2024.
While a new ATH wasn't reached this time, the current bullish momentum has renewed hopes for future price peaks.
This Bitcoin surge was supported by Ethereum, Bitcoin Cash, and Chainlink, which posted gains of 4-5%, while Dogecoin, Aptos, and some other cryptocurrencies rose by more than 9%. Most of the top 100 cryptocurrencies closed Tuesday in the green.
Only $200 Shy of a New ATH
Analysts are optimistic about Bitcoin's current state and potential. Rekt Capital noted that Bitcoin is "breaking out of a bullish flag pattern." However, for this breakout to be fully confirmed, the price needs to stay above $69,000 for the remainder of the week to maintain an upward trajectory.
Another indicator of the growing demand for Bitcoin is the sharp increase in total value locked (TVL) of Bitcoin in Layer 2 projects. Although the scale is relatively small, as Criptopolitan noted, in just a few days, Bitcoin’s TVL in restaking protocols rose about 2.5 times to $2.35 billion.
Currently, multiple chains, including Ethereum, Solana, TRON, and Cardano, are looking to wrap Bitcoin, thereby bringing more "digital gold" into their ecosystems and creating an L2 ecosystem similar to Ethereum’s.
It’s possible that the recent attempt to reach a new ATH can be tied to the activity of these projects, with the next attempt (or one of the upcoming ones) likely to succeed.
Moreover, Bitcoin is attracting more institutional investors every year, as it’s seen as a hedge against inflation and economic uncertainty. Companies like MicroStrategy and Tesla have started allocating part of their capital to Bitcoin, sparking interest from other market participants who are using Bitcoin to diversify portfolios and protect capital from fiat currency devaluation risks.
