Is history repeating itself? 3 indicators suggest that October will revive the Bitcoin bull market

Bitcoin (BTC) failed to break what is known as the “September Curse” as its price fell just over 7% for the month despite a strong rally just before it closed. Nonetheless, it appears that Bitcoin is making a comeback in October, a month known for painting big bullish reversals.

Bybt data shows that Bitcoin has closed October most of the time since 2013 in profits, with a success rate of more than 77%. Last year, the cryptocurrency rose 28% to levels above $ 13,500 after closing at around $ 10,800 in September, after falling about 7.5%.

Bitcoin’s monthly returns since 2013. Source: Bybt

Similarly, Bitcoin was up more than 10% in late October 2019, despite having fallen around 14% in the previous month. This made September felt like a month of sales for traders as they posted seven out of nine losses since 2013.

Is history repeating itself?  3 indicators suggest that October will revive the Bitcoin bull market
Is history repeating itself? 3 indicators suggest that October will revive the Bitcoin bull market

On the contrary, the month of October is represented as the downward buying period, suggesting that traders could move the price of Bitcoin up until October 31st.

The October fractal comes in the form of despite alarming signs. to the light China intensifies repression and the Tightening of the United States’ regulatory stance on the cryptocurrency sector.

Additionally, the prospect for the Federal Reserve to cap its $ 120 billion monthly bond purchase program through the end of this year appears to have limited the optimistic outlook for Bitcoin. Flexible monetary policy, combined with near-zero interest rates from the US Federal Reserve, were instrumental in pushing the price of Bitcoin from less than $ 4,000 in March 2020 to almost $ 65,000 in April this year.

But despite short-term setbacks, a flurry of key indicators showed that investors are still looking for exposure to the burgeoning crypto space.

Institutional flows

The crypto data tracking service, CryptoCompare found in its report that the volume related to investment products in digital assets rose 9.6% in September. Meanwhile, weekly product listings soared to $ 69.7 million, the highest since May 2021.

“Bitcoin-based products saw the highest inflows outside of all assets, averaging $ 31.2 million per week.” wrote CryptoCompare, adding that “There could be a hike into the last quarter of 2021.”

Weekly average of net inflows per asset in September. Source: CryptoCompare

The 20 week EMA fractal

Technical indicators also pointed to a bullish session for Bitcoinas it formed a base of around $ 40,000 before the end of September and rebounded key resistance levels as temporary support. This includes the exponential moving average (EMA) of 21 weeks, which defines the bias.

As we told you earlier, a drop below the 21-week EMA increased the likelihood that Bitcoin would drop another 78%. On September 27, the cryptocurrency fell below the green wave (as shown in the graph below) but regained it as support when it entered the October session.

BTC / USD weekly price chart with bull runs focused on the 20 week EMA. Source: TradingView

Movement above the 20-week EMA accompanied by rising volumes has resulted in explosive Bitcoin bull runs in the past. If the fractal repeats itself, the price of BTC could head for a new high in the next few sessions.

The outbreak of the bullish pennant

Another technical indicator that predicts a positive outcome for Bitcoin is the bullish pennant.

In detail, after rallying over 500%, the price of BTC has consolidated within two converging trend lines.

Traditional analysts see these sideways moves as a sign of sustained uptrends. In doing so, they assume that the price will break above the upper trend line of the pattern and rise by the length of the previous uptrend, the so-called horn.

Weekly chart of the Bitcoin price with a bullish pennant pattern. Source: TradingView

As a result, Bitcoin’s path of least resistance appears to be going up, with a possible breakout move aimed at propelling its prices towards $ 100,000 (the height of the pole is roughly $ 50,000).

The views and opinions expressed are those of the author only and do not necessarily reflect the views of Every investment and trading move involves risk, you will need to do your own research when making a decision.

Similar Posts