5 Factors Fueling Bitcoin (BTC)’s Potential Rally in ‘Uptober’!
Bitcoin is nearing a critical breakout point at $63,800, supported by key exponential moving averages (EMAs), signaling strong bullish momentum. October has historically been a favorable month for Bitcoin, with previous bull runs igniting during this period. With October rolling in, often referred to as “Uptober” in the crypto world, Bitcoin price appears poised for [...]
- Bitcoin is nearing a critical breakout point at $63,800, supported by key exponential moving averages (EMAs), signaling strong bullish momentum.
- October has historically been a favorable month for Bitcoin, with previous bull runs igniting during this period.
With October rolling in, often referred to as “Uptober” in the crypto world, Bitcoin price appears poised for a rally. Historically, the month has been favorable for the flagship crypto, with five major bull markets igniting during all previous October. Hence, below are five factors that could fuel a BTC price surge this ‘Uptober’.
1. Bitcoin Strong Technical Position
Bitcoin price is currently trading near the upper edge of a descending channel that has been a significant point of resistance over the past few months. At press time, BTC price was hovering around $63,800, just shy of a critical breakout level.
Thus, analysts are closely watching for a clear move above this resistance, as it could signal the start of a new upward trend. Should Bitcoin break through $64,500, it could pave the way toward the much-anticipated $70,000 target.
2. Support from Moving Averages
Another factor driving optimism is Bitcoin’s position above several key exponential moving averages (EMAs), including the 26, 100, and 200 EMA. These moving averages are not only acting as strong support levels but also signaling bullish momentum.
Currently, these EMAs are converging around $61,000, creating a solid support zone for Bitcoin price. The convergence of these critical moving averages strengthens the case for sustained bullish momentum. As long as the BTC price holds above these levels, a significant upside can be seen in ‘Uptober’.
3. Risk-On Market Attitude
The larger financial markets are showing signs of a “risk-on” attitude, which is favorable for risk assets like Bitcoin, per the CNF report. Equities have been performing well recently. Also, tech stocks are seeing increased exposure from hedge funds and institutional investors.
This bullish sentiment could spill over into the crypto space, driving more capital into Bitcoin. Moreover, the current market environment, with the 50 bps Federal Reserve rate cut last month, continues to fuel the upward rise in the BTC price. In addition, the anticipation for a 75 bps interest rate cut in the fourth quarter has also fuelled momentum.
4. Favorable Historical Patterns
October has historically been one of Bitcoin’s best-performing months. In fact, five of the crypto’s significant bull runs started in October, reported CNF. This historical pattern adds to the bullish sentiment surrounding Bitcoin this month.
After posting one of its best September on record, Bitcoin’s price momentum seems to be carrying over into October. QCP Capital even expects the BTC price to break above $70,000 in mid-October as Q3 earnings would weigh on the equity rally at that time.
5. Strong Demand for Bitcoin as an Inflation Hedge
With inflation concerns still looming globally, Bitcoin’s narrative as a hedge against inflation remains strong. As central banks around the world continue to grapple with rising inflation rates, more investors are turning to Bitcoin as a store of value. On the other hand, the total Bitcoin holdings in spot Bitcoin ETFs are about to hit 1 million, reported CNF.
The decentralized nature of Bitcoin, combined with its limited supply of 21 million coins, makes it an attractive alternative to gold. This growing demand for Bitcoin as an inflation hedge is likely to contribute to its price rise in October. Moreover, institutional players may join in the fray, tapping into MicroStrategy’s BTC buying tactics.
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