Bitcoin Crosses Above $67k as Traders Navigate ‘Liquidity Hunt’ Post-Rally
After retesting a ten-day low ($65,573) on Wednesday, Bitcoin has crossed $67,000, reaching $67,203 at press time. The rebound follows a rally, which peaked at $69,504 on Sunday, according to data from CoinGecko.
With Bitcoin almost hitting $70,000 earlier this week, some analysts say Thursday’s downtrend was only a “liquidity hunt” and expect the coin to continue its uptrend in the coming days.
What is a Liquidity Hunt?
For starters, a liquidity hunt is a scenario where crypto prices retrace toward the stop-loss levels of leveraged positions. When this happens, traders are forced to sell their positions to avoid liquidation. That creates downward pressure, prompting cryptocurrencies to drop to lower levels.
Chief Investment Officer at Merkle Tree Capital, Ryan McMillion, has described the recent downtrend as a healthy price correction and anticipates that Bitcoin will retest $70,000 before the end of “Uptober.” He, however, doesn’t see the coin setting a new all-time before the US election.
What US Elections Mean for Crypto
This year’s US Presidential election, set for November 5th, could be pivotal for crypto, with industry players expecting either Vice President Kamala Harris or former President Donald Trump to establish favorable rules offering clear guidance for blockchain-based business in the United States.
Head of Research at Apollo Crypto, Pratik Kala, is optimistic that Bitcoin will cross $73,759 (its all-time high) if Trump wins the election, arguing that crypto enthusiasts prefer him to Kamala due to his pro-crypto stance. However, he expects BTC to trade in the $63,000 and $69,000 range ahead of the elections.
“Trump’s Improved Winning Odds Have Boosted Bitcoin Value,” QCP Capital Says
Meanwhile, Singapore-based crypto trading company QCP Capital has released a note claiming that Bitcoin is trading at higher levels only due to growing optimism that Trump will soon occupy the White House. The firm points to polls on decentralized markets Polymarket, which indicate that the former US President’s winning odds have jumped to 63%.
QCP Capital analysts also expect BTC to react positively to the Non-Farm Payroll (NFP) report on November 1st, as they anticipate a surge in employment figures. The NFP data will help market participants predict the Federal Reserve’s next move.
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