Bitcoin price could retest all-time high soon; analyst predicts

Bitcoin price rose for two consecutive days on Monday, October 7, as traders embraced risk appetite.

Bitcoin (BTC) rose to an intraday high of $64,000, up 6.62% from last week’s low point. This recovery occurred despite the Federal Reserve becoming less likely to take a more dovish stance and American stocks retreating. The Dow Jones, S&P 500 and Nasdaq 100 were down more than 0.20% in early trading.

Some crypto analysts and investors remain optimistic about Bitcoin. Japanese company MetaPlanet became the latest major buyer of Bitcoin after adding $6.7 million worth of the coin to its reserves. According to Bitcoin Treasury, there are currently 530 coins worth over $33 million.

The company follows in the footsteps of MicroStrategy, which became the largest holder of Bitcoin with 252,220 coins. Other major shareholders include companies such as Marathon Digital, Riot Platforms and Block, formerly known as Square.

Popular crypto analyst Michael van de Poppe, who has over 728,000 followers, predicted in an X post that Bitcoin will rise and retest its all-time high of $73,800. He expects Bitcoin to retest $62,000 and then return to between $65,000 and $66,000. A break above this level would lead to a retest of the all-time high.

#Bitcoin It held the critical support area around $60,000 and bounced upwards.

I expect a lower timeframe retest at $62k, we will test $65-66k at the end of this week.

Break above = new all-time high test. pic.twitter.com/BhiFhCPT9r

— Michaël van de Poppe (@CryptoMichNL) October 7, 2024

Bitcoin’s recovery coincided with a significant increase in open interest in futures. Data from CoinGlass shows open interest has risen to over $34 billion, its highest level since October 1. A higher open interest figure is generally a positive sign for a cryptocurrency.

The next potential catalyst for Bitcoin this week will be Wednesday’s Federal Reserve minutes and Thursday’s US inflation data. A sign that inflation is still falling would likely lead to a more dovish Fed, which would be positive for Bitcoin and other risky assets.

Bitcoin price needs to flip $66,600 Bitcoin price chart | Source: TradingView

The daily chart shows that Bitcoin is facing strong resistance, shown in purple. This resistance connects the highest fluctuations in March, May, June, July and September.

The trend line is also the top of a falling widening wedge chart pattern. In price action analysis, this pattern often results in an uptrend. Bitcoin also broke above the 50-day and 200-day Exponential Moving Averages.

Therefore, there is an increasing chance that Bitcoin will trend upward and retest its all-time high. For this to happen, it will likely need to clear the descending trend line and psychological levels at $70,000 and $72,000.