Bitcoin (BTC) closed October with a strong 11% gain, marking its second consecutive green monthly close, although it fell short of ‘Uptober’ expectations. The month opened with a sharp dip to $58,855, which bulls quickly leveraged as a springboard for a rally, driving BTC near record levels.
Despite a modest pullback on October 31, BTC rebounded above $70,270, ending the month on a strong note and leaving investors on alert for potential buying opportunities as November kicks off.
As of press time, Bitcoin was trading at $71,405, with a modest 0.5% gain over the past 24 hours and a monthly gain exceeding 16%. Notably, the close of October saw Bitcoin charting two consecutive green monthly candles, a well-known bullish signal that often suggests a buying opportunity.
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According to an analysis by Tradingshot, this two-candle pattern has historically signaled the start of bullish cycles across multiple market phases since 2015.
Each occurrence of this pattern has typically preceded substantial price rallies, making it a widely respected indicator among technical analysts and market watchers.
Accumulation phases and historical patterns
Bitcoin’s history reveals several accumulation phases, during which the asset consolidates as buyers build positions. Following these phases, Bitcoin has consistently posted two consecutive green monthly candles, indicating the beginning of a new rally phase.
Previous bull cycles from 2015 to 2018 and 2019 to 2021 saw accumulation periods that eventually led to strong upward trends once two green candles closed in succession.
The current cycle, which entered its consolidation phase roughly seven months ago, reflects this established pattern.
During this period, Bitcoin consistently lacked consecutive green monthly candles, a hallmark of the classic accumulation stage where buyers quietly build positions.
Now, with two green monthly candles finally closing in succession, Bitcoin appears primed for a breakout, potentially signaling the start of a renewed rally phase.
Bitcoin’s bullish case
Bitcoin’s bullish momentum has intensified further ahead of the U.S. presidential election, pushing its price slightly above $73,000 and nearing its all-time high.
The political climate, particularly with a potential Trump win, given his supportive stance on cryptocurrency, is seen as a bullish factor, contributing to Bitcoin’s recent surge as election odds shift in Trump’s favor.
Data from SosoValue shows that on October 31, BlackRock’s IBIT ETF (NASDAQ: IBIT) attracted $318 million in net inflows, following a record-breaking day on October 30 with $875 million added. This surge pushed total U.S. spot Bitcoin ETF holdings beyond the 1 million BTC mark, showing robust institutional demand for Bitcoin.
Since its launch, BlackRock’s ETF has accumulated close to $30 billion in assets, with nearly half amassed within the past month alone.
Bloomberg analyst Eric Balchunas noted that IBIT’s recent inflows surpassed even established funds like Vanguard’s VOO and iShares’ IVV, illustrating a broad institutional shift toward Bitcoin as a hedge against economic uncertainties.
“IBIT took in more cash than any other ETF in the world over the past week. This is out of 13,227 ETFs, which includes VOO, IVV, AGG, etc. It’s so hard to beat those veteran Cash Vacuum Cleaners, even for a week, especially for an infant ETF (3mo-1yr old)”-Eric Balchunas
This institutional momentum could become a transformative catalyst, as major players like VanEck view Bitcoin as a future global reserve asset with a projected price potential as high as $3 million by 2050.
Analysts are closely watching for a Trump win, which could intensify this trend, further fueling interest and investment in Bitcoin.
With historical patterns pointing to a bullish breakout and strong institutional backing, Bitcoin appears well-positioned for further gains, potentially making this a favorable moment for investors anticipating the next rally phase.
