At the beginning of last week, bitcoin showed a positive trend, demonstrating an increase of 8%. After a fairly positive price movement, bitcoin returned to the price range from which the growth began.
What awaits bitcoin in October? Here is a fundamental and technical analysis of the main cryptocurrency.
What Is Happening with BTC Price?
The world’s largest cryptocurrency made a brief rally to $20,300. For the first time in the last 10 days, it rose above the psychologically significant price range of $20,000. Excluding stablecoins, the top 15 cryptocurrencies by market cap are also in the red by the end of the day.
Investors are now gearing up for October, which has always been quite a bullish month for bitcoin. Coinglass data shows that October is one of the most reliable months for the BTC rate to rise — up 39% in 2021, 27% in 2020, and 10% in 2019.
However, Bitcoin is known for running in four-year cycles. In October 2014, Bitcoin lost 12.95% of its value, and 2018 saw a less significant fall of 3.83%.
It is worth noting that the past is not always a guarantee of the future. However, the statistics may tell us that BTC is heading for another bearish month.
Another negative sign is the global economy’s adverse factors: interest rates are rising as central banks try to bring inflation under control.
Concerns persist that aggressive rate hikes could push major economies into recession. The Bank of England has expressed concern that the UK is already in recession.
What Awaits Bitcoin (BTC) in October?
Bitcoin has a local support level ranging from $18,700 to $19,600.
However, if you recall the BTC price history, then in June 2018, bitcoin reached the $6,000 mark. Until November, there were no clear signals for a market reversal. However, most traders didn’t believe in a price breakdown below $6,000. What happened next? As a result, the bitcoin price dropped to $3,100 in November 2018.
Now many traders believe that bitcoin has already reached the bottom. There are quite a few articles on the Internet on this subject.
However, let’s note an important fact. There is a rule that the price follows liquidity. A large accumulation of liquidity and stop orders is collected just below the $18,000 price level.
Thus, based on the analysis of the price movement history and the current market situation, we can conclude that the asset may drop to the price level of $9,000 — $11,000. However, this is unlikely to happen before November 2022.
Therefore, it is more likely that in October, the price of bitcoin will fluctuate in a small range, and we will not see sharp movements in the growth or fall of the asset.
Price forecasts allow you to observe the market situation and more accurately assess all fears and risks. Most bitcoin price predictions include both optimistic and pessimistic forecasts. Thus, it remains only to observe how the price of digital gold will change in the future.
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What is the prediction for bitcoin price? What do you guys think? Feel free to share your forecasts in the comments below!