Bitcoin (BTC) failed to break what is known as the September curse as its price fell more than 7% during the month despite a strong rally just before the close of trading. However, Bitcoin is expected to make a comeback in October, a month known for positive uptrends.
ByBt.com data shows that Bitcoin ended October with the most gains since 2013 – with a success rate of over 77%. Last year, the cryptocurrency surged 28% to over $ 13,500, after ending at around $ 10,800 in September, after falling about 7.5%.
Similarly, Bitcoin was up 10% in late October 2019, despite having fallen about 14% in the previous month. That makes September look like a month of sales for traders, with a record loss of seven out of nine since 2013.
In contrast, October presents itself as the buying period, suggesting that traders are likely to push Bitcoin price higher on the 31st of this month.
October’s fractal surfaces defy alarming signals in the form of China’s mounting repression and tougher U.S. regulatory stance on the crypto sector.
Additionally, the prospect of the Federal Reserve capping its $ 120 billion monthly bond purchase program through the end of the year seems to have limited Bitcoin’s bullish outlook. The loose monetary policy, combined with interest rates close to zero by the US Federal Reserve, was instrumental in driving the price of Bitcoin from under $ 4,000 in March 2020 to almost $ 65,000 in April 2021.
But despite the short-term setbacks, a variety of key indicators suggest that investors still want exposure to the booming crypto space.
Cryptocurrency data tracking service CryptoCompare found in its report that volume related to digital asset investment products rose 9.6% in September, while weekly inflows of products rose to $ 69.7 million, the highest Value since May 2021.
CryptoCompare writes, “Bitcoin-based products have the highest inflows of any asset, averaging $ 31.2 million per week,” adding that “may tend to increase in the final quarter of 2021”.
Technical indicators also point to an upcoming bullish session for Bitcoin as it builds a base of around $ 40,000 before the close of trading in September and reclaims key resistance levels as temporary support. This includes a skewed 21-week exponential moving average (21-week EMA).
As noted by Cointelegraph, a drop below the 21-week EMA has raised the likelihood of Bitcoin continuing to 78%. On September 27, the cryptocurrency fell below the green wave (as shown in the graph below) but regained it as support for October trading.
A surge above the 20-week EMA, accompanied by increased volume, has led to explosive Bitcoin price rallies in the past. Therefore, if the fractal repeats itself, the BTC price could be heading for new record highs in the coming sessions.
Another technical indicator that predicts bullish results for Bitcoin is the Bull Pennant.
Related: Analyst’s Bitcoin Monthly Review after 2 Months of Operation – His October Target is $ 63K
In particular, after a 500% rally, BTC price has consolidated within two converging trend lines.
Traditional analysts see these sideways moves as a sign of a bullish continuation. In doing so, they predict that price will break above the top trendline of the pattern – and rise by the length of the previous uptrend known as the flagpole.
As a result, Bitcoin’s path of least resistance appears to be going in the opposite direction, with a possible breakout move aimed at pushing the price towards $ 100,000 (the height of the flagpole is around $ 50,000).
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