In analysis common on X, cryptocurrency analyst Patric H. of CryptelligenceX outlines seven reasons why investors should be confident about Bitcoin’s price trajectory this week. “How can anyone here be bearish?!” BTC broke the weekly downtrend, closing above key levels, with some still calling for a sub-40k level. dollars?! “I’m sorry, bears, you seem to have missed the fundamental changes that have taken place in the last two weeks,” he states.

#1 Extension of the Mt.Gox Bitcoin repayment deadline

The defunct Mt.Gox exchange filed an application to change the repayment date, which was granted by the court. The recent repayment deadline for remaining creditors is now set for October 31, 2025, a full year later than previously scheduled for October 2024. This extension eliminates the direct market pressure to sell approximately 44,905 BTC (approximately $2.9 billion) that was take out flood the market.

#2 China’s economic stimulus

China is set to issue $325 billion in bonds to boost its economy. At the same time, cryptocurrency exchange OKX has launched a fully licensed trading platform in the United Arab Emirates (UAE), offering Chinese investors a legal opportunity to trade cryptocurrencies under the jurisdiction of the United Arab Emirates. Patric H. predicts: “Chinese money will go into cryptocurrencies in the fourth quarter.”

#3 Declining Bitcoin exchange reserves

Bitcoin exchange reserves continue to dwindle as institutional investors and whales accumulate the cryptocurrency at an unprecedented rate. This trend indicates supply shortages on stock exchanges, which, combined with growing demand, may lead to a supply shock. “Ultimately, this will lead to a supply shock, which will lead to price increases in due course,” the analyst notes.

#4 Bitcoin whale accumulation surge

On-chain data shows recent 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 play on the futures market. Real whales move the market through spot trading and OTC markets. That is why on-chain data is crucial.”

He added that these recent whales are unlikely to be sold until significant liquidity enters the market from retail investors. “Look how furiously the recent whales are hoarding Bitcoin; a market like this has never seen such accumulation,” he emphasized. In particular, the lack of correlation with US spot ETF inflows suggests that these may be strategic institutional accumulations.

#5 Trump is leading in the polls

Political forecasts indicate that former US President Donald Trump is gaining favor in swing states ahead of the upcoming elections. Trump is projected to win all seven key swing states, according to the latest data from Polymarket. Patric H. reminds readers: “Trump is a supporter of cryptocurrencies; Elon Musk will lead the Department of Government Efficiency (DOGE).”

#6 S&P 500 as a pioneer

The S&P 500 index is trading at an all-time high, which historically signals positive momentum for Bitcoin and cryptocurrencies. “There has not been a moment in history when Bitcoin and the altcoin market have not caught up with the performance of the S&P 500,” notes Patric H., dismissing skepticism with: “But ‘it’s different this time’…yeah, sure.” The correlation between time-honored markets and cryptocurrencies suggests that bullish trends in stocks could spill over to the Bitcoin and cryptocurrency sectors.

#7 Seasonality

Historically, the fourth quarter (Q4) has been the most bullish period for Bitcoin, especially in halving years. “Bitcoin and the cryptocurrency market typically outperform all asset classes by half during the 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, signaling a potential reversal in momentum from bearish to bullish. Moreover, the cryptocurrency is holding well above its 50-week exponential moving average (EMA), a critical support level. Additionally, the Moving Average Divergence Index (MACD) broke higher for the first time since April, often interpreted as a buy signal.

“Yes, there will be reversals from time to time. However, from now on, dips are for buying as the market structure has clearly changed from a downtrend to an uptrend,” Patric concludes.

At the time of publication, the BTC price was $68,397.

Featured image created with DALL.E, chart from TradingView.com