October has historically been a bullish month for bitcoin, with an average rise of 22%.
The dollar fell slightly, which allowed an increase in demand for risky assets.
In an effort to anticipate the potential price action of Bitcoin (BTC), traders are warning of how it will unfold in October. It is likely to rise during this period for some, considering the historical trend of the gains made in the said month. However, it will be necessary to find out if other factors do not prevent its increase.
October is usually a profit month for bitcoin traders, with an average increase of 22%, according to Coinglass records since 2013. In those nine years, the cryptocurrency only went wrong twice that month (in 2014 and 2018). Given this, it was recognized as the most bullish month in its history, along with February, which also suffered losses only twice.
For this reason, analysts like Crypto Rover have celebrate October arrival. This month the profits were happening mostly Right after the person who suffered the biggest losses in his history: September. This is why the IncomeSharks trader has hung Who does not understand those who decided to sell at this time given the potential returns that he usually receives.
In just two September members, in 2015 and 2016, bitcoin experienced a price hike. The rest has always been negative for cryptocurrencies, including 2022 which, at the time of writing, showed a drop of around 2.8%. As reported by CriptoNoticias, this trend is similar to the movement of US stock markets, which have historically recorded declines in this month, including this year.
Along the same lines, US stocks usually improve in October. This can be seen, for example, in the movement of the NASDAQ 100 index over the past 20 years, Indian This week, investor and analyst Andy LaGuardi. Therefore, it indicates that Bitcoin could recover this month, given the relationship that prevailed between the two markets in 2022.
October is usually a boom month for the markets
It should be noted that during 2022, risky assets were hurt by lower demand in the face of macro tensions and uncertainty. Such a situation has fueled its current bear market. This panorama continues as interest rates rise in the US and Europe to reduce inflation and threats from Russia.
Despite this, some traders are anticipating a potential rally for Bitcoin in October due to its historical uptrend this month. In contrast, this projection grows with Slight decrease in the US dollar index. In this way, it breaks this year’s rally to its highest in 20 years, as investors have taken it as a haven to avoid risk.
About that, Trader Daniel Movdi expression That with the dollar index falling, “there could be a recovery in the stock market and cryptocurrency.” the reason He sees the potential for a Bitcoin price increaseif a decrease in the demand for the US currency leads to an increase in investment in risky assets.
In this regard, market advisor XMaximist He said: “Don’t let the market makers win you guys. It’s all a game and they test your mental strength. I think October is going to be a green month, so wait there.” Such a strategy can, of course, be considered as an anticipation of potential risks in order to avoid undesirable scenarios, since there is no guarantee of profit.