Bitcoin (BTC) continued to attract attention with its performance and unique patterns heading into the U.S. election period. Its Relative Strength Index (RSI) for October closely matched historical election years, reflecting RSI readings from past cycles in 2012, 2016, and 2020.
With BTC’s RSI sitting at around 65 in each election year, some analysts speculated that this historical pattern could suggest another upward move, especially if Bitcoin maintains strong sentiment post-election.
As of late October, BTC’s price held firmly above the channel it broke out from earlier this month. By sustaining this level, Bitcoin kept its bullish momentum, showing resilience against recent negative events.
Market analysts believed this positioning could support Bitcoin’s next test toward the $70,000 level. However, BTC faced potential volatility from upcoming elections, with some predicting fluctuations depending on election results and any market impact.
Recent geopolitical tensions also influenced price trends. Following Israel’s recent military actions, BTC experienced sharp but temporary drops, highlighting its tendency to react to global events.
For instance, after Israel’s conflict with Iran intensified earlier in the month, BTC briefly fell by over 4% before rebounding by nearly 6.6% within hours.
Such reactions demonstrated Bitcoin’s capability to recover quickly after brief downturns, providing optimism for continued resilience.
Bitcoin ETF Inflows Signal Strong Market Interest
Bitcoin’s potential for a price rally received additional support from substantial inflows into Bitcoin ETFs. Since October 10, Bitcoin ETFs accumulated over $3 billion in investments, indicating heightened interest among institutional investors.
This large influx reinforced market speculation that Bitcoin could approach the $100,000 mark in the near future. Analysts pointed to these ETF inflows as a sign of strong institutional demand, driving optimism about BTC’s potential for a new breakout.
While many investors attributed these ETF inflows directly to asset purchases by giants like BlackRock, analysts clarified that spot ETFs don’t operate on a same-day buy-and-hold model.
Instead, these investments often follow a 30-day settlement process. Notably, BlackRock’s holdings saw consistent increases, with the firm adding 17,111 BTC to its portfolio in October.
With these additions, BlackRock’s total holdings now exceeded 400,000 BTC, underscoring its substantial involvement in the market.
Long-Term BTC Growth Trends and the Power Law Debate
Beyond short-term fluctuations, some analysts discussed Bitcoin’s growth trajectory through the lens of the “Bitcoin Power Law.”
This model suggested long-term price movement follows a growth curve similar to early internet adoption. Some projections indicated this pattern might persist for another 10 to 15 years before potentially shifting to a more stabilized growth model.
Though the Power Law debate remained speculative, it highlighted the strong long-term interest among BTC supporters.
Despite differing views on the Power Law, analysts agreed that Bitcoin’s trajectory still appeared robust, with significant growth potential as adoption continued globally. This long-term outlook reflected Bitcoin’s resilience as it solidified its role as a key digital asset.
BTC’s Market Position and Investor Sentiment
Bitcoin’s recent moves in price and its historical RSI readings fostered optimism for a post-election rally. While election outcomes posed potential risks, Bitcoin’s ability to sustain strong support levels encouraged market confidence.
Bitcoin’s journey remains a focal point in the market as it enters the election season with key support levels intact and robust institutional interest. With BTC’s RSI echoing previous election cycles and ETF inflows showing bullish signs, many investors speculated that BTC could see higher levels soon, adding further momentum to its long-term trajectory.
