Bitcoin spikes to $71,500, 4% away from all-time high

Bitcoin has rallied over 5% to $71,500 and is now within striking distance of its all-time high of $73,700. The surge comes as the US presidential election is just days away.

According to data from CoinGecko, the largest crypto asset by market cap broke the $70,000 price level on Monday after a minor correction last week, mostly driven by the escalating conflict in the Middle East and alleged regulatory scrutiny over Tether.

Despite a sudden drop below $66,000, Bitcoin bounced back and consolidated within the $67,000-$68,000 range over the weekend. It ultimately broke out and soared to $70,000 for the first time in over four months.

According to seasoned trader Peter Brandt, the post-halving advance may have started and Bitcoin may be entering a bullish phase.

“The 5-month inverted expanding triangle has now been completed. Follow through will be important. The post-halving advance may have begun. The series of lower highs and lower lows since March has come to an end,” Brandt said in a recent post on X.

As Crypto Briefing previously reported, certain key metrics pointed to a potential upward trend in the price of Bitcoin.

The Bollinger Bands, an indicator used to assess price volatility, are at one of their tightest points in history. This “Bollinger Squeeze” often precedes periods of low volatility, which can lead to powerful price breakouts.

In addition, the Miner Position Index (MPI), which measures the flow of Bitcoin from miners to exchanges, shows that Bitcoin miners are currently in an accumulation phase, while block rewards are on the rise. The combination of a low MPI and rising block rewards suggests a bullish outlook for Bitcoin.

Bitcoin ETF inflows surge and Election Day approaches

Demand for Bitcoin ETFs remains strong. According to data tracked by Farside Investors, US-listed spot Bitcoin ETFs recorded approximately $3 billion in net inflows in the last two weeks.

These ETFs started this week on a high note, collectively drawing around $479 million in net capital with no outflows reported. BlackRock continued its Bitcoin buying spree, logging over $315 million in net buying on Monday.

Bitwise CIO Matt Hougan sees reaccelerating Bitcoin ETF inflows among key factors that could propel Bitcoin to six-figure prices, together with the upcoming presidential election, increasing whale accumulation, reduced Bitcoin supply post-halving, and global monetary adjustments.

Analysts at Standard Chartered project that Bitcoin could reach approximately $73,000 by Election Day on November 5.

Plus, the analysts suggest that if former President Donald Trump wins the election, Bitcoin may surge to around $80,000, with a potential increase of up to $125,000 by the end of the year if Republicans secure control of Congress.

Analysts at Bitfinex also anticipate that the US presidential election could serve as a catalyst for Bitcoin’s rally, potentially pushing its price beyond $73,666 due to heightened market activity and volatility surrounding the election.

Meanwhile, several other experts believe that Bitcoin’s long-term trajectory remains intact regardless of the electoral outcome.

Steven Lubka, head of private clients at Swan Bitcoin, anticipates that Bitcoin will hit six-figure prices due to its strong correlation with fiscal and monetary conditions rather than political leadership.