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in an analysis x.com/CryptelligenceX/status/1848225721375985982″ target=”_blank” rel=”nofollow”>shared In x, crypto analyst Patric H. of CryptelligenceX outlines seven reasons why investors should be optimistic about bitcoin's price trajectory this week. “How can anyone be a bassist here?! btc broke weekly downtrend, closed above key levels, and some people are still asking for less than $40k?! Sorry bears, you clearly missed the fundamental changes of the last two weeks,” he says.
#1 Mt. Gox bitcoin Payment Term Extension
The defunct Mt. Gox exchange has requested a change in its payment term, which has been approved by the court. The new deadline to repay remaining creditors is now set for October 31, 2025, one year later than the previously scheduled October 2024. This extension removes immediate market selling pressure of approximately 44,905 btc (around $2.9 billion), which was anticipated to flood the market.
#2 China's economic stimulus
China is willing to issue $325 billion in bonds to stimulate its economy. At the same time, cryptocurrency exchange OKX has launched a fully licensed trading platform in the United Arab Emirates (UAE), offering a legal avenue for Chinese investors to engage in cryptocurrency trading under UAE jurisdiction. Patric H. predicts: “Chinese money will enter cryptocurrencies in the fourth quarter.”
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#3 Decrease in bitcoin exchange reserves
bitcoin exchange reserves continue to decline as institutional investors and whales accumulate the cryptocurrency at an unprecedented rate. This trend indicates a shortage of supply on the stock exchanges which, together with the increase in demand, could cause a supply shock. “Over time, this will cause a supply shock that will cause prices to increase in due time,” the analyst notes.
#4 Increase in bitcoin whale accumulation
On-chain data reveals that new bitcoin whales are accumulating assets like never before. Ki Young Ju, CEO and founder of CryptoQuant, recently commented: “The current market volatility is just a game in the futures market. Real whales move the market through spot trading and OTC markets. “That’s why on-chain data is crucial.”
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He added that these new whales are unlikely to sell until substantial liquidity from retail investors enters the market. “Look how ferociously the new whales are hoarding bitcoin; This market has never seen so much accumulation,” he emphasized. In particular, the lack of correlation with US spot ETF inflows suggests these could be strategic institutional accumulations.
#5 Trump leads the polls
Political forecasts indicate that former US President Donald Trump is gaining favor in swing states ahead of the next election. According to the latest data from Polymarket, Trump is expected to win all seven key states. Patric H. reminds readers: “Trump is pro-cryptocurrency; Elon Musk will lead a Department of Government Efficiency (DOGE).”
#6 S&P 500 as a pioneer
The S&P 500 Index is trading at an all-time high, historically indicating positive momentum for bitcoin and cryptocurrencies. “There has not been a time in history when bitcoin and the altcoin market has not matched the performance of the S&P 500,” notes Patric H., dismissing skepticism with: “But 'this time it's different'… yeah , clear”. .” The correlation between traditional markets and cryptocurrencies suggests that bullish trends in stocks could extend to the bitcoin and cryptocurrency sector.
#7 Seasonality
Historically, the fourth quarter (Q4) has been the most bullish period for bitcoin, especially in the halving years. “bitcoin and the cryptocurrency market tend to outperform all asset classes in a halving year,” the analyst argues.
Supporting these fundamental reasons, technical analysis also paints a positive picture for bitcoin. Patric H. highlights that bitcoin closed above its weekly downtrend line, indicating a possible reversal from bearish to bullish momentum. Furthermore, the cryptocurrency remains firmly above the 50-week exponential moving average (EMA), a critical support level. Additionally, the Moving Average Convergence Divergence (MACD) indicator has made a bullish crossover for the first time since April, which is often interpreted as a buy signal.
“Yes, there will be setbacks from time to time. But from now on, dips are for buying, as the market structure clearly moved from a bearish trend to an bullish trend,” concludes Patric.
At the time of this publication, btc was trading at $68,397.
Featured image created with DALL.E, chart from TradingView.com
