The price of Bitcoin (BTC) failed to break the so-called curse of the decline, as it fell just over 7 percent in September, despite recovering strongly just before the monthly close. However, it appears to be making a comeback in October, which is known for its aggressive bullish moves.
Data from ByBt.com shows that Bitcoin has generally closed the month of October with gains since 2013. In fact, with a success rate of more than 77 percent … Last year, the cryptocurrency rose 28 percent to levels above $ 13,500 after closing September at around $ 10,800 after a drop of around 7.5 percent.
Similarly, Bitcoin had gained more than 10 percent at the end of October 2019 after ending September 2019 with a drop of 14 percent. This shows that since 2013, September has closed down seven percent.
Rather, October is defined as the buying period, which indicates that traders can increase the price of Bitcoin until the 31st.
This specific October process has emerged despite mounting crypto pressures from China and tough US regulatory stance on the sector.
Additionally, expectations that the Fed will cap its monthly $ 120 billion bond buying program later this year support Bitcoin’s upward move. The loosening monetary policy of the US central bank coupled with near-zero interest rates were instrumental in driving the Bitcoin price rise from less than $ 4,000 in March 2020 to nearly $ 65,000 in April 2021.
But despite short-term declines, a number of key indicators reveal that investors are still willing to take risks in the burgeoning crypto space.
The report from crypto data monitoring resource CryptoCompare indicated that volumes associated with digital asset investment products increased 9.6 percent in September. Meanwhile, weekly entries soared to $ 69.7 million, the highest since May 2021.
“Bitcoin-based products saw the highest entry level averaging $ 31.2 million per week,” CryptoCompare said, adding that “there may be upward movements as we enter the final quarter of 2021.”
20 week EMA fractal
Technical indicators also point to a bullish process for Bitcoin as it formed a base around $ 40,000 before the close of September and claimed key resistance levels as temporary support. This is illustrated by the 21-week exponential moving average (EMA).
As Cointelegraph previously reported, a drop below the 21-week EMA opens up a 78 percent chance that Bitcoin will continue to decline. On September 27, the cryptocurrency fell below the green line (as shown in the chart below), but regained support when it entered October.
A move above the 21-week EMA, accompanied by rising volumes, sets the stage for historically explosive Bitcoin bull runs. As a result, if the fractal repeats, the price of BTC could move towards a new high in the next period.
bull pennant breaking
Another bullish technical indicator for Bitcoin is the bullish pennant.
Related: Bitcoin Has A Positive New Month: Heartwarming Predictions From Analysts
In detail, the price of BTC consolidated within two converging trend lines after rising more than 500 percent.
Conventional forecasts see these sideways movements as a sign of a continuation of the uptrend. By doing so, it predicts that the price will rise above the pattern’s upper trend line and rise along the previous uptrend called “Flagpole”.
As a result, Bitcoin is more likely to go up. If the flagpole in the formation becomes real, it will likely go up to $ 100,000 (roughly $ 50,000 with the flagpole).
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