Bitcoin breaks out to an 8-month high, what’s driving BTC higher?

Bitcoin has jumped at the start of the new week, trading at a 33-week high after bulls propelled the price to $85,000. 

The largest cryptocurrency gained 5% over last week and is up a further 3.5% on Monday, reaching its highest level since January. 

Investors have shrugged off two potential hurdles from last week: 

• The Senate’s failure to pass the Clarity Act 
• The Federal Reserve hiking interest rates by 25 basis points and signalling at least another rate hike this year. 

Instead, the price has been supported by regulatory developments through the SEC, falling oil prices and easing Treasury yields. 

While the Senate failed to advance the Clarity Act, the U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission are pursuing a different path, using available legal tools to strengthen regulation and add structure to the US crypto market. This is boosting demand, given that it could help create a more attractive backdrop for institutional investors. 

Oil prices are down around 10% from Wednesday last week, which has helped calm inflation concerns, pulling Treasury yields lower from a 19-year high reached earlier in the month. This has boosted risk assets, with Bitcoin and US stocks benefiting. 

ETF inflows have also fuelled bullish momentum. BTC ETFs recorded $433.03 million in net inflows on Friday, flipping the weekly flow to a net positive $6.21 million. However, September inflows stand at $313.6 million, well below the $3.52 billion recorded in August. Should BTC ETF inflows ramp up this could help BTC price rise. 

What to watch this week? 

With the Fed's decision in the rearview mirror, attention will now be on Fed speakers for further clues on how aggressive the Fed will be in addressing inflation. Speeches from Chicago Fed President Goolsbee and New York Fed President John Williams will be in focus, as well as PMI data. 

Middle East developments and Trump's meeting with Chinese President Xi Jinping could be wild cards. 

Bitcoin closes above 50-week moving average 

On the weekly chart, the price closed the week above the 50 EMA. Historically, this has been an important point in trend reversals and has acted as a ceiling during the bear market. The last close above the 50-week moving average was on 9 November 2025. 

While one weekly close isn't enough to confirm that Bitcoin has reached its cycle bottom, if the price holds above the 50-week MA and continues to create higher highs, that would be encouraging ahead of Uptober, historically one of the strongest months for BTC. 

BTC technical analysis 

On the daily chart, BTC/USD has broken out of its range, reaching its highest level since January. BTC/USD had been trading in a range capped by $81.5K over the past month. The price has pushed above this level and the $82.7K May high, reaching a peak of $85.2K. 

Buyers, supported by the golden cross and positive momentum, will look to extend gains above $85K towards $90K as the next logical level before attention turns to $95K. 

Immediate support is seen at the $82.7K-$81.5K support zone. A break below here opens the door to $76.5K, the lower bound of the recent range, before attention turns to the 50 and 200 EMAs between $75K and $73K.