Matrixport Market Observation: BTC Breaks Through $70,000 Resistance, Is a New High Just Around the Corner?

Author: Matrixport

In the past week, the market fluctuated in the range of $65,000 - $69,000. On the 28th, BTC began to rise from the support level of $67,600 and broke through $70,000 in the early hours of the 29th. Although a short-term pullback occurred due to a bearish counterattack, the upward momentum of BTC remained strong. At 10 AM on the 29th, BTC price reached a high of $71,587, with a 24-hour increase of 5.6%. As of the publication of this article, BTC price is fluctuating around $71,000 (the above data is sourced from Binance spot, October 29, 15:00).

Based on the intensifying market FOMO sentiment, the rise of U.S. stocks, and the increasing odds of Trump, BTC may hit new highs before the election. Of course, profit-taking after the election results are announced may put some pressure on BTC prices, but regardless of the election outcome, the likelihood of BTC hitting new highs in the current context is relatively high.

Market Review

Macro data week, a series of key data may impact multiple market developments

This week is a macro data week, with a series of key data set to be released, including Tuesday's JOLTS job openings report, Wednesday's Bank of Japan interest rate decision and the preliminary annualized quarterly GDP for the U.S. in Q3, Thursday's core PCE price index, and Friday's non-farm payroll data. Investors are advised to closely monitor macro data and adjust their positions in a timely manner.

Tech giants' earnings reports reach a climax, directly influencing market sentiment

Recently, U.S. stocks have performed well, and the market generally believes that the rise in U.S. stocks is intrinsically linked to the rise in BTC. On the 28th, all three major U.S. stock indices closed higher, with the S&P 500, Dow Jones, and Nasdaq rising by 0.35%, 0.72%, and 0.37%, respectively. The earnings season for U.S. tech giants is also reaching a climax, and the performance disclosures from giants like Alphabet, Microsoft, Meta, Amazon, and Apple may directly impact market sentiment.

Tether responds to Wall Street Journal report, USDT price returns to pegged price

On the 25th, Eastern Time, the Wall Street Journal reported on the U.S. government's investigation into Tether. Following the news, USDT briefly fell below its pegged price, putting pressure on the entire cryptocurrency market. From the 26th onward, Tether CEO has responded and denied the report. Since there have been no further confirming news over the weekend, the price of USDT has returned to slightly below the pegged price level.

Trump's overall polling support significantly rises, his company Trump Media & Technology surges over 20%

As the seven key swing states in the U.S. increase their bets on Trump, his overall polling support has risen significantly. Polymarket's latest data shows that the predicted probability of Trump winning is 66.3%, while Harris stands at 33.7%. RCP polling data indicates that the probabilities for Trump and Harris are 48.5% and 48.4%, respectively. Meanwhile, on the 28th, Trump Media & Technology, a company under Trump, surged over 20% at the close of U.S. stocks. Many markets are already preparing for Trump's election, and the heat of options in the crypto market has notably increased.

BTC candlestick chart shows bullish indicators, analysts believe BTC price has returned to an upward channel

TradingView technical chart analyst TradingShot stated, "BTC broke through its 7-month bearish megaphone pattern last week" and "BTC has regained the important support level of the 50-week moving average." This indicates that Bitcoin has successfully escaped the downward trend during this period and is expected to reopen a new upward cycle. Historical data shows that BTC's price is often influenced by the 50-week moving average, which has frequently served as a support level for Bitcoin's price.

At the same time, a MACD golden cross has appeared on BTC's weekly chart. A MACD golden cross is typically seen as a bullish signal, indicating that a significant price increase may occur in the future.

Investment Suggestions

Although there is a possibility of short-term fluctuations in BTC, analysts generally have a positive outlook on BTC's future development. As the development of BTC ETFs further promotes the mainstream adoption of BTC, and BTC gradually becomes a mainstream choice in corporate investment allocations, the liquidity siphoning effect of BTC may further manifest.

In the current market situation, investors can consider covering multiple assets to reduce the impact of black swan events, and a satellite strategy may be a good choice. For example, comprehensively planning the asset allocation of crypto assets and traditional safe-haven assets (like gold), and then meticulously planning crypto asset investments based on individual risk tolerance and financial planning to determine a stable return and risk-return ratio, while obtaining stable and rational returns, and reasonably planning investments for appreciation in both crypto and gold.

Matrixport's Shark Fin or Trend Smart Yield products are structured products suitable for conservative investors, providing cost protection. If one can judge market trends to achieve relatively good incremental returns, these products are suitable for investors who are optimistic about BTC and ETH trends in the long term. Matrixport's RWA platform, Matrixdock, has recently launched the gold token XAUm, which is fully backed by LBMA-standard physical gold bars with a purity of no less than 99.99%, and has opened physical redemption services in Hong Kong and Singapore.

As a leading one-stop crypto financial service platform globally, Matrixport offers users a variety of asset management products, including dual-currency investments, snowballs, shark fins, trend smart yields, seagulls, and other structured products; quantitative strategies, passive strategies, and other strategic investments. These products support multi-currency investments with a wide range of selectable investment periods.

Disclaimer: The above content does not constitute investment advice, sales offers, or purchase offers to residents of the Hong Kong Special Administrative Region, the United States, Singapore, or other countries or regions where such offers or invitations may be prohibited by law. Digital asset trading may involve significant risks and volatility. Investment decisions should be made after careful consideration of personal circumstances and consultation with financial professionals. Matrixport is not responsible for any investment decisions made based on the information provided in this content.