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Bitcoin is on a tear, eyeing the $70,000 mark. So, what’s driving this latest surge? Let’s break it down.
The expiration of over $3.9 billion worth of Bitcoin futures options is a big deal. These options expired early morning on Deribit and set BTC’s “max pain point” at $63,000.&nbsp;
For those unfamiliar, the max pain point is the price at which most options contracts expire worthless. It doesn’t mean Bitcoin will hit $63,000, but it does create downward pressure.
<img fetchpriority="high" decoding="async" class="alignnone wp-image-560415 size-full" src="https://www.cryptopolitan.com/wp-content/uploads/2024/07/BTCUSD_2024-07-26_14-32-14.png" alt="Bitcoin heads for $70,000 - What's behind the surge?" width="2108" height="862" srcset="https://www.cryptopolitan.com/wp-content/uploads/2024/07/BTCUSD_2024-07-26_14-32-14.png 2108w, https://www.cryptopolitan.com/wp-content/uploads/2024/07/BTCUSD_2024-07-26_14-32-14-300x123.png 300w, https://www.cryptopolitan.com/wp-content/uploads/2024/07/BTCUSD_2024-07-26_14-32-14-1200x491.png 1200w, https://www.cryptopolitan.com/wp-content/uploads/2024/07/BTCUSD_2024-07-26_14-32-14-768x314.png 768w, https://www.cryptopolitan.com/wp-content/uploads/2024/07/BTCUSD_2024-07-26_14-32-14-1536x628.png 1536w, https://www.cryptopolitan.com/wp-content/uploads/2024/07/BTCUSD_2024-07-26_14-32-14-2048x837.png 2048w" sizes="(max-width: 2108px) 100vw, 2108px">
Periods around options expiry are often volatile. Traders brace for price swings, trying to avoid heavy losses. While the max pain point is important, it’s not a guaranteed target.&nbsp;
It’s just one factor in a sea of market influences.
Next up, we have Donald Trump’s upcoming speech at the Bitcoin 2024 conference in Nashville tomorrow. There’s a lot of chatter online about what he might say.&nbsp;
There are expectations of him announcing a Bitcoin Reserve Policy if he wins the next election. The idea of the U.S. becoming a major crypto buyer is enough to get any crypto enthusiast excited.
<img decoding="async" class="alignnone wp-image-560416 size-full" src="https://www.cryptopolitan.com/wp-content/uploads/2024/07/BTCUSD_2024-07-26_14-31-58.png" alt="Bitcoin heads for $70,000 - What's behind the surge?" width="2108" height="1502" srcset="https://www.cryptopolitan.com/wp-content/uploads/2024/07/BTCUSD_2024-07-26_14-31-58.png 2108w, https://www.cryptopolitan.com/wp-content/uploads/2024/07/BTCUSD_2024-07-26_14-31-58-300x214.png 300w, https://www.cryptopolitan.com/wp-content/uploads/2024/07/BTCUSD_2024-07-26_14-31-58-1200x855.png 1200w, https://www.cryptopolitan.com/wp-content/uploads/2024/07/BTCUSD_2024-07-26_14-31-58-768x547.png 768w, https://www.cryptopolitan.com/wp-content/uploads/2024/07/BTCUSD_2024-07-26_14-31-58-1536x1094.png 1536w, https://www.cryptopolitan.com/wp-content/uploads/2024/07/BTCUSD_2024-07-26_14-31-58-2048x1459.png 2048w" sizes="(max-width: 2108px) 100vw, 2108px">
Alongside Trump’s speech, traders are eagerly awaiting new inflation data from the country.&nbsp;
Recently, the core PCE price index for June was released, showing a 0.2% increase on a monthly basis. This was expected to be 0.1%, with the previous value at 0.10%.&nbsp;
Annually, the core PCE price index was 2.6%, slightly higher than the expected 2.5%. Traders now believe the Federal Reserve will keep rates unchanged in July but might start cutting them in September.
Bitcoin needs to hold strong above $65,000, according to crypto analyst Rekt Capital. He <a href="https://x.com/rektcapital/status/1816749734268149839" rel="noopener noreferrer nofollow" target="_blank">said</a> that:&nbsp;
<blockquote>
 “The retest was successful. Bitcoin has confirmed $65,000 as support. Price will now continue to occupy the $65000-$71500 region (red).”
</blockquote>
<img decoding="async" src="https://pbs.twimg.com/media/GTZkNbcXwAA9o_n?format=png&amp;name=medium" alt="Image">
Another positive sign is the inflow into Bitcoin ETFs that saw $31.1 million yesterday. At press time, Bitcoin was trading at $67,380, a slight increase of 0.03%.&nbsp;
The Bollinger Bands mark the price range between $68,311 and $64,800 as Bitcoin keeps trying to break above the midline, which aligns with the 50-period moving average (MA) at $66,133.
<img decoding="async" class="alignnone wp-image-560417 size-full" src="https://www.cryptopolitan.com/wp-content/uploads/2024/07/Screenshot-2024-07-26-at-14.52.52.jpg" alt="Bitcoin heads for $70,000 - What's behind the surge?" width="1181" height="1454" srcset="https://www.cryptopolitan.com/wp-content/uploads/2024/07/Screenshot-2024-07-26-at-14.52.52.jpg 1181w, https://www.cryptopolitan.com/wp-content/uploads/2024/07/Screenshot-2024-07-26-at-14.52.52-244x300.jpg 244w, https://www.cryptopolitan.com/wp-content/uploads/2024/07/Screenshot-2024-07-26-at-14.52.52-975x1200.jpg 975w, https://www.cryptopolitan.com/wp-content/uploads/2024/07/Screenshot-2024-07-26-at-14.52.52-768x946.jpg 768w" sizes="(max-width: 1181px) 100vw, 1181px">
This midline is a dynamic support/resistance level. A sustained move above this line, with growing momentum, will bring more bullish action.&nbsp;
On the other hand, the lower Bollinger Band at $64,800 is a critical support. Falling below this could signal a bearish reversal or consolidation. So is the 200-period moving average (MA200) at $65,682.
But the proximity of the MA50 and MA200 lines hints at a ‘golden cross,’ where the short-term MA crosses above the long-term MA, a bullish sign.

Bitcoin heads for $70,000 – What’s behind the surge?

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