Bitcoin Up 10% in a Week, Smashes 5-Month High and Soars Past A$75k

October 13, 2021, 10:15 AM AEST - 5 days ago

Bitcoin (BTC) is encroaching on its all-time high, with some calling this month “Uptober”. The digital asset has moved nearly 12 percent in just over a week and has around 9 percent to go before reaching its previous ATH of A$83,000.

With a host of driving factors coming together, the fourth quarter looks promising for the crypto industry, but mostly Bitcoin (BTC), which analysts are now confidently comparing to the bull runs of 2013 and 2017.

During the past week, Bitcoin has been on a run, making some of the most noteworthy gains in months. At the time of writing it was floating around A$77,000, leaving many of the altcoins behind as BTC dominance increases.

The bitcoin supply squeeze is also contributing to the gain in momentum, pushing BTC back to a US$1 trillion asset.

Welcome to Bitcoin Season

Bitcoin’s market capitalisation is well above US$1.050 trillion. Dominance over the altcoins reached 44 percent on October 13 as most of them have stalled.

On-chain analyst William Clemente says Bitcoin’s outlook for the final quarter of this year remains “highly bullish”.

Macro: highly bullish. Supply dynamics (HODLing behaviour) remain strong, hash coming back on the network, retail still out of the market. Still standing on my thesis for a strong Q4.

William Clemente

However, on-chain analysis shows there are multiple factors that could lead to short-term BTC volatility, such as whales taking profits and highly liquid entities taking possession of BTC.

Underperforming altcoins led to predictions of a “Bitcoin season” before some form of alt season re-emerges later. In the meantime altcoins have been bleeding out, with most down around 10-20 percent versus the BTC pair since October 10.

The situation is particularly visible in Ether (ETH), the largest altcoin by market capitalisation, now at its lowest against BTC since the start of August. According to Michaël van de Poppe, CEO and founder of crypto consultancy and education platform Eight, “ETH/BTC [is] breaking down, while Bitcoin is consolidating”.

Binance Coin, Solana, Polkadot, Cardano, Ripple and Avalanche have marked minor losses against the US dollar, while DOGE, LUNA and UNI have dropped even more.

Cryptocurrency Market Overview. Source: coin360.com

Bitcoin Fundamentals Hitting New Records

With the hash rate and difficulty all but recovered and nearing all-time highs, fresh data shows that other aspects of Bitcoin are setting records of their own.

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