Bitcoin (Bitcoin) Failed to break the so-called Curse of September Despite a strong rebound before the close, its price still fell by more than 7% this month.Nevertheless, Bitcoin Looks like it’s making a comeback October, this month is known for portraying a radical bullish reversal.
Bybt’s data shows that since 2013, Bitcoin has ended in profit for most of October-a success rate of more than 77%. Last year, after falling by about 7.5%, the cryptocurrency surged 28% after closing at around US$10,800 in September, reaching a level of more than US$13,500.
Similarly, as of the end of October 2019, Bitcoin has risen by more than 10%, although it has fallen by about 14% last month.That so September looks like a sell-off month For traders, since 2013, there have been losses in seven of the nine recorded.
In contrast, October is a period of bargain hunting, which suggests that traders may eventually push up the price of Bitcoin before October 31st.
Despite the worrying signs, the fractal surface in October China intensifies its crackdown with The U.S. strengthens its regulatory stance In the field of encryption.
In addition, the Fed’s prospects limit its $120 billion monthly bond purchase plan Later this year seems to limit Bitcoin’s upside prospects.Loose monetary policy, coupled with the U.S. central bank’s close to zero interest rates, will help push Bitcoin prices to rebound from below Increased from USD 4,000 to nearly USD 65,000 in March 2020 By April 2021.
However, despite the short-term setbacks, a series of key indicators indicate that investors still want to invest in the booming cryptocurrency sector.
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Institutional inflow
Encrypted data tracking service CryptoCompare in its report Transaction volume related to digital asset investment products increased by 9.6% in September. At the same time, weekly product inflows increased to US$69.7 million, the highest level since May 2021.
CryptoCompare wrote: “Bitcoin-based products have the highest inflows, with an average of $31.2 million per week, and there may be upside potential by the last quarter of 2021.”
20-week EMA fractal
Technical indicators also indicate that there will be a bullish period after Bitcoin is formed Approximately USD 40,000 base The key resistance level was recovered before the close in September as temporary support. This includes the 21-week exponential moving average (21-week EMA) that defines the deviation.
As Cointelegraph Covered earlier, Falling below the 21-week moving average increased the possibility of Bitcoin’s continued decline by 78%. On September 27, the cryptocurrency broke the green wave (as shown in the figure below), but recovered it as support when it entered the October trading session.
Moving above the 20-week EMA, along with the increase in trading volume, has historically led to the outbreak of the Bitcoin bull market.Therefore, if the fractal repeats, the price of BTC may rise Set an all-time high in the next meeting.
Bull pennant breakthrough
Another technical indicator that predicts the bullish outcome of Bitcoin is the bull flag.
In detail, the price of BTC has been consolidating within two convergent trend lines after its more than 500% rebound.
Traditional analysts view these lateral movements as signs of continued bullishness. In doing so, they expect the price to break the upper trend line of the pattern — and rise as much as the length of the previous uptrend (called the flagpole).
Therefore, the path of least resistance for Bitcoin seems to be the upside, and a potential breakout will bring its price to 100,000 USD (the height of the flagpole is about 50,000 USD).
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