Bitcoin is moving steadily towards the summer high and the level of 72000

Bitcoin quotes spent last week in consolidation, but at yesterday's trading session the steady growth resumed. The price of the main cryptocurrency broke through the July high and the round level of 70000, seeking to rise to even higher marks. The next target for the bulls could be the June high, located near the level of 72000. In case of success the way to the March historical highs won’t take long.

Bloomberg analysts note steady inflows into Bitcoin ETFs. They attracted $910 million last week and more than $3.6 billion since the beginning of October. At the same time, traders in the derivatives market are increasingly entering into contracts on the main cryptocurrency with an execution price of $80 thousand. Approaching presidential elections in the U.S. only strengthen this trend.

Stephane Ouellette, CEO of FRNT Financial, sees Bitcoin as an asset that can hedge against inflation. The continuation of the rate cutting cycle by leading central banks causes a depreciation of these countries' currencies. As a result, investors are looking for other areas to invest their capital, including the cryptocurrency market. Although most experts are still not ready to compare Bitcoin with gold, changes in their price have recently become highly correlated again.

Buying by cryptocurrency market participants is also supported by the technical indicators. Yesterday, on the daily chart of Bitcoin, the 50-day moving average crossed the 200-day moving average from the bottom to the top, forming a golden cross pattern. Tony Sycamore, an analyst at IG Australia Pty, believes this is a sign of continued quotes upward movement. According to his estimates, the renewal of the historical maximum may take place as early as next week in case of Donald Trump's return to the White House. Trump has already promised Elon Musk, who has a great influence on the cryptocurrency community, a government job.

As long as the Bitcoin quotes are above the level of 69500, the scenario of continued growth remains likely. Overcoming the level of 72000 will strengthen this trend.

The following trading strategy can be suggested:

Buy BTCUSD in the range of 70000–71000. Take profit — 72000. Stop loss — 69500.