Bitcoin ‘Uptober’ in Play as BTC Gains 8% in October, Adds $30B to Market Cap
After weeks of sustained losses, Bitcoin (BTC) is showing signs of recovery as the premier digital asset tries to pull the crypto sector out of the extended bear market. Along these lines, Bitcoin’s recent gains have seen the asset build momentum towards the $21,000 level after consolidating around the $19,000 – $20,000 range for most of October.
At press time on October 29, Bitcoin was trading at $20,971, representing a gain of 8.21% from the $19,379 recorded on October 1. Notably, the current price represents Bitcoin’s monthly high after facing the possibility of further correction below $20,000.
The rally in Bitcoin has also been triggered by increasing buying pressure, driving the overall market to regain its $1 trillion capitalization. Notably, as of October 29, Bitcoin controlled a market capitalization of $402.31 billion, representing an addition of about $30.84 billion from its October 1 value of $371.47 billion.
Bitcoin is still struggling against macroeconomic factors
Amidst the rally, it is worth noting that there is no significant trigger for the rally, with Bitcoin struggling against prevailing macroeconomic factors led by high inflation and interest rate hikes.
In particular, with Bitcoin correlated with the stock market, the asset’s price has been weighed down by the Federal Reserve’s tightening policy to curb soaring inflation. At the same time, there is bullish sentiment around Bitcoin with the notion that the Federal Reserve may slow its policy as the economy stares at a possible recession.
Interestingly, several cryptoanalysts have predicted that Bitcoin is already showing signs of a breakout. For example, crypto trading expert Michaël van de Poppe noted that the last week of October could be bullish for Bitcoin, citing related bullish macroeconomic events.
It is worth noting that the macroeconomic factors still pose a significant threat to Bitcoin’s upward movement. However, as reported by Finbold, Kitco News senior technical analyst Jim Wyckoff has argued that bulls have the ‘general technical advantage in the near term’, an indicator of a possible near-term price rally.
“Price action this week has seen a bullish upside ‘breakout’ from the choppy and sideways trading range of recent weeks. A new price uptrend is in place on the daily bar chart. Bulls have the overall technical advantage in the short term suggesting even more upside price action on short term,” he said.
At the same time, there is skepticism that the current rally could be a bull trap that is likely to lead to a new low.
Bitcoin Technical Analysis
Furthermore, technicals seem to favor Bitcoin bulls. A technical analysis summary favors “buy” at 11, with “neutral” at nine, while six support sell.
Elsewhere, moving averages for buys are at nine, with neutral at one, while sells are supported by five. Finally, the oscillators are dominated by neutral at eight, while two are for “buy”, with one recommending “sell”.
What next for Bitcoin?
Overall, market participants hope that Bitcoin will build on the historical trend of recording gains over October. For example, based on the previous Halloween holidays, Bitcoin has consistently increased over the past three years.
In this line, according to a Finbold report, 28,488 respondents from the CoinMarketCap community project that Bitcoin will trade for $21,248 during the 2022 Halloween holiday. The figure represents a fall of 65.17% on October 31, 2021, a price of $61,300.
Disclaimer: The content of this page should not be considered investment advice. Investment is speculative. When you invest, your capital is at risk.
