According to the fundamentals, Bitcoin reached 73.6 thousand dollars

The price of Bitcoin (BTC) rose to an all-time high of $73,800, and this move is a departure from recent rallies as several fundamentals indicate that the bull market is shifting into high gear.

Here are six important facts that suggest Bitcoin is poised to hit new highs.

Bitcoin is officially breaking out of a seven-month long downtrend

Bitcoin's strong range break above its previous trading range and the continued multi-day close prompted traders to open new positions in pursuit of higher targets in the $85,000–$160,000 range, a point well made by veteran trader Peter Brandt.

BITCOIN $BTC's 5-month inverted expansion triangle is now complete. Follow-up will be important. The post-halving rally may have begun. The series of low highs and low lows since March is over. pic.twitter.com/lth9fLv0yt

— Peter Brandt (@PeterLBrandt) October 29, 2024

The price of Bitcoin broke through the selling walls and wiped out most of the short traders

Bitcoin cleared the $65,000 to $71,000 wall of requests (red rectangle) from $65,000 to $71,000, dumping short traders and sending bears empty-pocketed to their dens.

The dominance of Bitcoin has reached 60%

BTC dominance, a variable ratio indicating market share in the entire crypto market, moved to 60% on October 29 for the first time since March 2021.

Welcome home #BITcoin dominance

It's been a long journey but BTC dominance has finally reached 60% pic.twitter.com/DsxU0OUuyu

— Benjamin Cowen (@intocryptoverse) October 29, 2024

Some traders view the Bitcoin Dominance Index and the Crypto Fear & Greed Index as a gauge of investor sentiment. According to CoinGecko, “A BTC bull run is likely when Bitcoin's dominance and price continue to trend upwards.

Related: Bitcoin trader sees all-time high this week as BTC price nears $73K

Open demand rose to a new all-time high.

To reach the peak, Bitcoin open interest reached a new high of $43.6 billion. This highlights market participants' interest in BTC, and the growth can be interpreted as a positive indicator of investor sentiment as the price reaches new all-time highs.

Contango, a juicy base trade, and CME futures hit new all-time highs.

For the past two days, the Bitcoin market has been in contango, with futures prices leading the spot price; And on October 29, Bitcoin reached a new high of $74,485 in CME futures.

HighStrike's crypto options and derivatives analyst JJ told Cointelegraph about the popularity of base trading in the futures market.

“Essentially, what happened was that you had a lot of people making money longing IBIT/Spot ETFs and shorting CME futures, but very few, if any, people were directional long CME futures. You can see that the CME base is down from 16% in February (when most of them hit long-term highs in the direction) to 8.75% now.

JJ explained:

“What's happening now is hedging to prepare for price discovery and those funds that have no BTC exposure are using CME to hedge their exposure by going long the option. The net result is CME's basis for an exit of more than 10% by the end of the year.

The move above $70K is different from previous attempts due to the market's lack of interest in buying OTM wings.

Although activity is higher in the spot, the 10-delta fly is trending lower — heading toward a yearly low. Basically; The market is not… pic.twitter.com/MTH8qzYE6Z

— Jake O (@JO_wintermute) October 29, 2024

Traders are betting on Trump's election victory and the crypto-friendly presidency.

Bitcoin futures markets are reflecting demand following crypto-friendly governance, with calls in the options market, gamma compression and positioning for what traders believe will be a Donald Trump election victory.

For every 1% raised between $71k and $85k, distributors need to short $15m. If we move from $71k to $85k, traders need to buy $252m to hedge.

There are many ways traders can hedge if we go up, but buying a position is probably the cheapest #bitcoin #gamma pic.twitter.com/CnBkeCYOsM

— Alex Thorn (@intangiblecoins) October 29, 2024

Spot Bitcoin ETF is inbound.

Bitcoin exchange-traded funds (ETFs) entering the space have soared over the past two weeks, with more than $3.8 billion flowing into the instruments during that period. The trend continued on Oct. 28, when data from Farside Investors showed the ETF took in $479.4 million. As of today, the total assets in ETFs are sitting at $68.5 billion, and professional traders expect this figure to rise in the near future when options on ETFs are launched.

This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.