Will Bitcoin pull the entire market to a new ATH after jumping off the support band?
As the largest cryptocurrency by market cap, Bitcoin is generally not susceptible to any other event in the room. However, if Bitcoin has new developments, it will surely affect the entire market.
There was also a major macro shift for Bitcoin that month that could even shake the entire market.
What happened to Bitcoin?
While many factors play a role here, one of the main reasons behind its success in October was that BTC bounced off the bull market support band in the last week of September.
The Bull Market Support Band (BMSB) plays an important role in determining the future, especially when considering previous bull runs. Every ricochet of the BMSB in history has resulted in a strong run north.
Bitcoin emerges from BMSB | The source: TradingView
Such a move was last seen in August 2020, followed by a seven-month rally until Bitcoin hit an all-time high in April 2021. On the weekly chart, that 484% increase drove the price to $ 62,000 from $ 10,000.
As expected, altcoins also developed strongly at this time. Hence, it has a good impact on total market capitalization.
Similarly, the rally in the BMSB this October sparked a 22% increase in capitalization.
Total market capitalization for cryptocurrencies | The source: TradingView
As long as the trend of BTC continues, the broader market is expected to keep rising. Although September was relatively bearish, the leading cryptocurrency didn’t fall below the band. In the future, a red month is also unlikely to push BTC below the band.
In addition, such events also have an impact on engagement and investment. The boom in August 2020 and Bitcoin’s growing popularity over the course of the year resulted in a surprisingly high number of participants.
20 million more wallets have been added since October 2020. It would take around 2 years to reach this number by 2020, and the period is likely to be significantly shorter in the future.
Is there any other cause than the price movement?
In addition to price volatility, institutions play a big role in increasing the reach of cryptocurrencies. Companies like Grayscale, MicroStrategy, and Tesla really brought Bitcoin and Altcoins into the mainstream.
People’s trust in such companies, or some of the people they represent, such as Michael Saylor and Elon Musk, also increases investment.
High participation rates and broad acceptance are the backbone of every successful initiative. In fact, it is expected that Bitcoin will only take 4 years to reach today’s level of internet adoption, while the internet took 7.5 years.
Bitcoin and Internet Adoption Rate | The source: VisBitcoin
Events like this are critical to the success of any project. In particular, the above-mentioned boom could soon trigger more growth for Bitcoin, investors, and the market.
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According to AMBCrypto