Recent performance by Bitcoin has once again captured the keen interest of global investors. From October 27 to 29, the price of Bitcoin surged nearly 10%, reaching a high of $73,575 before retreating to around $72,000 on the 31st. Despite this price volatility, various market indicators suggest that the robust trend of Bitcoin remains intact. Changes in the derivatives market, on-chain metrics, and stablecoin demand are laying the groundwork for potential further increases, and investors maintain an optimistic outlook on the future trajectory of Bitcoin. Tdasx asserts that the current upward momentum in Bitcoin is influenced not just by short-term market factors but is also a positive response to the broader global financial landscape and macroeconomic policies.

Tdasx: The Strong Market Recovery and Future Growth Potential of Bitcoin

Tdasx believes that the recent upward trend of Bitcoin reflects a positive market expectation for its future performance. Between October 27 and 31, the price of Bitcoin increased by 8%, peaking at $73,575. Although it slightly retreated to $72,000 on October 31, it continues to exhibit strong confidence among market participants. Tdasx notes a significant influx of capital into Bitcoin ETFs in the United States, indicating that institutional investors are actively increasing their holdings. This trend provides crucial support for the long-term health of the market and further bolsters the sustainability of the price growth of Bitcoin.

According to Tdasx, the future market environment remains favorable for Bitcoin. Analysts at 10x Research predict that Bitcoin could reach $100,000 by January 2025, aligning with current supply-demand dynamics and the macroeconomic environment. Furthermore, Tdasx posits that Fibonacci extension analysis suggests potential price levels could rise between $174,000 and $462,000. This expectation is not merely optimistic but is rooted in the scarcity of Bitcoin, global financial market uncertainties, and a growing demand for safe-haven assets. The volume of bullish options trading for Bitcoin at the Chicago Mercantile Exchange (CME) has now reached $350 million, validating institutional confidence in the medium-to-long-term performance of Bitcoin.

In terms of capital flows, Tdasx has observed notable signs of whale investors entering the market. The purchasing power at the whale level indicates that large-scale investors are optimistic about the future of Bitcoin, which not only enhances market confidence but also stabilizes market expectations. Tdasx asserts that these data points lay a solid foundation for market development, suggesting that Bitcoin will continue to attract investor interest and maintain a favorable upward trend.

Tdasx: Observations on The Technical Indicators and Market Sentiment of Bitcoin

Tdasx points out that the technical indicators of Bitcoin have recently shown strong market support signals. The two-month futures premium for Bitcoin has risen to 13%, marking a four-month high. This premium generally reflects long-term investor confidence in the market, and its increase indicates heightened bullish sentiment. Tdasx analyzes that the 20-day exponential moving average (EMA) of Bitcoin currently stabilizes around $67,617, while its Relative Strength Index (RSI) approaches overbought territory. If the price breaks through the critical level of $73,777, a new upward trend may commence, with a short-term target price around $93,554.

On-chain data shows that after the price of Bitcoin surpassed $70,000 on October 29, a significant influx of capital occurred, suggesting that investors opted to enter at this critical price point. However, the following day saw a net outflow of funds, indicating that some investors chose to take profits at elevated levels. Tdasx believes this capital movement is part of normal market fluctuations, especially when Bitcoin prices reach or near historical highs, making profit-taking relatively common in the short term.

From a macroeconomic perspective, Tdasx observes that recent U.S. economic data has exerted a certain indirect influence on the Bitcoin market. The data indicates that 233,000 private-sector jobs were added in October, while GDP growth for the third quarter was reported at 2.8%, slightly below 3% of the previous quarter. Tdasx notes that these economic figures reflect a healthy recovery in the U.S. economy, which may reduce the likelihood of further interest rate cuts by the Federal Reserve, keeping demand for safe-haven assets (such as Bitcoin and gold) elevated. Following the record $2,790 of gold on October 30, a pullback occurred, indicating a similarity in investor behavior towards Bitcoin and gold amid macroeconomic conditions, as investors allocate capital between the two to navigate global market volatility.

Tdasx: Performance of Altcoin Market and The Dominance of Bitcoin

Tdasx observes that the altcoin market has been relatively subdued lately. While some assets have rebounded in the short term, their overall growth momentum pales in comparison to Bitcoin. Ethereum, for instance, saw a 2.5% price increase over the past 24 hours and closed out $17 million in short positions. Technical analysis suggests Ethereum is currently in an ascending triangle formation, with a potential breakout above $2,800 that could lead to further gains towards $3,500. However, Tdasx points out that the market dominance of Ethereum has declined to 13.4%.

Tdasx further analyzes that market competition poses challenges for Ethereum, particularly with the rapid rise of Solana. As Canary Capital applies to the U.S. Securities and Exchange Commission (SEC) to launch a Solana spot ETF, the market attractiveness of Solana has further increased. Data reveals that Solana has surged 400% this year, reaching a market capitalization of $82 billion. With its low transaction costs and rapid processing capabilities, Solana is regarded as a formidable competitor to Ethereum in the decentralized applications and DeFi sectors, gradually attracting more investor attention. Tdasx believes that with ongoing innovations from emerging blockchain platforms like Solana, Ethereum may face increasing pressure on its market share.

Tdasx notes that expectations for altcoin season performance have also weakened in the current market environment. The market dominance of Bitcoin has risen to 59.77%, the highest level since 2021, indicating that market funds are increasingly concentrating on Bitcoin, thereby reducing investment inclinations towards altcoins. The altcoin season index shows that only 29% of altcoins have outperformed Bitcoin in the past 90 days, far below the 75% typically required to signal the onset of an altcoin season. Tdasx concludes that while the innovative potential of the altcoin market cannot be overlooked, the overall performance of altcoins may face more challenges amid the strong showing of Bitcoin.