Bitcoin Surges to Highest Level in Over a Month as Seasonality Boosts Confidence
Bitcoin (BTC-USD) began the month of October with a strong rally, reaching its highest level in over a month on Monday. The first cryptocurrency climbed 2.5% to $27.7K, buoying other tokens and crypto-linked stocks. This surge came after briefly hitting $28.4K earlier in the session.
One of the reasons behind Bitcoin’s upward movement is the historical trend of October being a robust month for the cryptocurrency. In eight of the last ten years, Bitcoin has ended October in the green. David Keller, chief market strategist at StockCharts.com, highlighted this pattern, stating that “October has become affectionately known as ‘Uptober’ due to this persistent strong performance.”
The expectation of seasonal tailwinds boosting Bitcoin’s performance in October aligns with previous patterns. August and September tend to be challenging months for cryptocurrencies, as well as stocks. Therefore, an October rally for both assets would follow historical trends.
Bitcoin already saw a 4% price increase in September, marking the first gain for that month since 2016. Despite still-low trading volumes, this gain is a positive sign for the cryptocurrency. Keller predicts that if Bitcoin can surpass the 200-day moving average, it has the potential to reach July’s price highs of $31K-$32K. Until then, he believes Bitcoin will remain rangebound.
The recent surge in Bitcoin’s price has brought renewed optimism to the cryptocurrency market. Investors and traders are eagerly watching to see if Bitcoin can sustain its upward momentum throughout the month of October. If historical trends continue to hold true, we may see Bitcoin break out of its range and embark on a significant rally in the coming weeks.
