The Bitcoin price has shattered previous records by surging past $126,000, marking a new all-time high this Monday. This milestone has been attributed to the cyclical phenomenon known as “Uptober,” a term coined by analysts to describe October’s historical trend of strong price performance during Halving years.
Bitcoin Price Surge Linked To ‘Safe-Haven Demand’
The rise in Bitcoin and broader crypto prices coincided with the US government shutdown that commenced on October 1. This has fueled greater demand for assets perceived as safe havens, as investors seek stability amidst growing political uncertainty in the United States.
Further contributing to the Bitcoin price surge, recent data from Bloomberg highlights that investors have injected approximately $3.2 billion into a group of 12 US Bitcoin exchange-traded funds (ETFs) in the past week alone.
Yet, analysts assert that the Bitcoin options market is increasingly influencing the cryptocurrency’s price movements, reflecting a potential shift in market behavior toward the leading cryptocurrency.
Could $150,000 Be Next?
Rachael Lucas, an analyst at BTC Markets, notes that option traders are eyeing resistance levels at $135,000, with the possibility of reaching $150,000 if current momentum continues.
The options market currently displays a bullish sentiment, with over 60% of open interest concentrated in call options, signaling strong investor confidence. However, Lucas also raised concerns about the potential for liquidation cascades should momentum falter.
According to Bloomberg’s analysis, the Bitcoin price has averaged gains of approximately 22.5% over the past decade during Uptober rallies. If BTC follows similar patterns, it could reach a new high of $146,000 by the end of the month.
As of press time, the Bitcoin price has slightly retraced back toward approximately $125,850, recording gains of 100% year-to-date.
Featured image from DALL-E, chart from Tradingview.com