With October, known in the crypto community as “Uptober,” approaching, Bitcoin looks set to make a fresh high.
Historically, October has been a positive month for Bitcoin, as it saw the start of five major bull markets.
Based on the current technical and market conditions, there is a strong possibility that this month will witness an outstanding performance for the currency.
Here are five key factors that could drive Bitcoin higher in October:
1. Strong technical position:
Technical analysis indicates that Bitcoin is approaching an important resistance level, which has formed over the past months at the upper edge of a descending channel.
Currently, the price is trading near $64,000, and if Bitcoin can clearly break through this barrier, it may head towards the long-awaited target of $70,000.
Such a breakout may indicate the beginning of a new and strong uptrend.
2. Support from moving averages:
Bitcoin remains supported above important exponential moving averages, namely the 26 EMA, 100 EMA, and 200 EMA, which reinforces the bullish momentum.
These averages form a strong support area at around $61,000.
As long as Bitcoin remains above these levels, the path of least resistance will remain upward.
3. Improved market position:
Data suggests that the larger financial markets are adopting a bullish stance, with stocks performing well and hedge funds increasing their investments in technology stocks.
This positive sentiment in traditional markets may extend to the cryptocurrency market, increasing the likelihood of Bitcoin rising this month.
Bitcoin has previously benefited from such economic conditions, especially during periods when investors are seeking higher returns on risky assets.
4. Bitcoin as a hedge against inflation:
As inflation concerns persist, Bitcoin retains its appeal as a hedge against eroding purchasing power.
In an unstable economic environment, investors are increasingly turning to Bitcoin as a way to protect their money from the effects of inflation, which increases the likelihood of continued demand and rising prices.
5. Historical bullish pattern in October:
October has always been a favorable month for Bitcoin.
Over the past few years, it has witnessed the start of five emerging markets.
Given Bitcoin's outstanding performance in September, which was among the best in its history, analysts expect the upward momentum to continue during October as well.
Bottom line:
Based on current technical conditions, strong support from moving averages, improved market sentiment, coupled with Bitcoin’s appeal as a hedge against inflation and its strong October history, Bitcoin appears to be in a position to make significant gains this month but it is too early to say so, based on the above indicators and Bitcoin’s historical movement.
