Bitcoin has a high likelihood of surging 21% this week because the historic patterns of October have been very good in terms of recovery after infrequent falls, and there is a chance of it soaring to 124K.
The month of October can be said to live up to its nickname of Uptober because it was the second month of the year in which Bitcoin enjoyed the largest gains in its history, with an average of 20.1 percent returns.
In the recent past, Bitcoin fell dramatically by over five percent, which is unusual in the history of October, and this has taken place just four times over the past ten years, as economist Timothy Peterson posted on X (formerly Twitter).
Source – X
However, in most of those occasions, Bitcoin recovered in seven days, in some cases by over 20%.
Strong Rebounds Signaled by October Rare Drops.
According to Peterson, the levels of decrease in Bitcoin in October are unprecedented since 2017, 2018, 2019, and 2021.
In 2017, 2018, and 2019, after every correction, Bitcoin soared by a whopping 16, 4, and 21 percent, respectively, and with only the slightest of 3 percent declines after the correction in 2021.
Should this trend continue, Bitcoin may recover from this week’s low of approximately 102,000 up to approximately 124,000 within the next few days, just barely below its recent all-time highs.
This trend is indicative of the fact that October is an important month in the yearly cycle of Bitcoin, which is also supported by high volumes in the market and technical signals that hint that this correction could be the beginning of healthy consolidation, and not the beginning of a downward trend.
Market Optimism Amidst Volatility.
Although markets have been shaken lately by geopolitical events like new US tariffs affecting the markets in general, Bitcoin has since stabilized at around $111,700, as it hit an all-time high of above $125,000 earlier this month.
The traders and investors seem to be optimistic since there are 21 days remaining in Uptober, according to Jan3 founder Samson Mow on X.
At the same time, according to other market observers, it is possible that Bitcoin has bottomed out of its current cycle and that it can experience an upward momentum once more.
The price cycles of Bitcoin have been increasing with time, which implies that the cryptocurrency has more space to grow without any decline.
Compression of the volatility and shrinking of the Bollinger bands of the weekly charts is usually a prelude to a big price action, either upwards or downwards.
Analysts warn that small fake breakouts may occur but that the history is favourable to a recovery path.
The current dip and the high history of October make a very interesting scenario and the possibility of a strong rebound of Bitcoin.
History would suggest that the price of Bitcoin may well rise up to 21% this week, and this would add to the credit that has been given to October as a month where Bitcoin tends to turn volatility into opportunity.
Source: https://www.livebitcoinnews.com/bitcoin-news-live-today-bitcoin-could-rally-21-this-week-as-october-trends-favor-rebound/
