Bitcoin (BTC) is on course to realize the ‘Uptober’ phenomenon, with the maiden cryptocurrency set to achieve a monthly close on record.
Indeed, this momentum emerged after Bitcoin began the month by posting a lackluster performance as bulls battled to breach $70,000.
At press time, the asset was trading at $71,152, reflecting a monthly gain of about 14%, marking the best monthly close ever.
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However, not everything has been rosy for the leading cryptocurrency, which faced the threat of plunging further after dropping below the $60,000 support zone.
With the end of October coinciding with Halloween celebrations, if the asset closes on another high, it will align with a historical pattern related to this period.
Except for 2018 and 2022, Bitcoin has traded higher on each Halloween day than the year before. For Halloween 2023, Bitcoin rallied almost 110% compared to current valuations.
To put Bitcoin’s October gains into perspective, a popular cryptocurrency trader with the pseudonym el_crypto_prof observed that today is shaping up to be one of the most pivotal monthly closes in recent years, potentially triggering a new price discovery phase.
Based on the expert’s analysis, Bitcoin has reached levels not seen since its 2021 peak. Breaching this point could indicate that BTC is set to move into a new bullish phase.
Bitcoin’s bullish case
Bitcoin’s end-month momentum has gathered steam ahead of the decisive United States presidential elections. Notably, the asset rallied slightly above $73,000, bringing it inches closer to its last record high.
The upcoming elections are considered bullish, especially if Republican nominee Donald Trump wins re-election, considering he has expressed support for the crypto sector. In this regard, Bitcoin has been surging in correlation with the growing odds of a possible second-term presidency for Trump.
Additionally, institutional interest driving Bitcoin’s price, as exhibited by movements in the spot exchange-traded funds (ETF). Data shared by SosoValue indicated that Bitcoin ETFs recorded historic inflows on October 30, hitting the $893 million level. To this end, the value marked the second-largest single-day inflow in history.
What next for Bitcoin
With Bitcoin teasing an all-time high, crypto trading expert Michaël van de Poppe noted in an X post on October 31 that the asset has entered a consolidation phase, with technical indicators suggesting a possible price breakout.
According to Poppe, as long as BTC remains above $70,000, it could signal further bullish momentum in the coming weeks.
With Bitcoin exhibiting bullishness, caution is warranted, considering the asset is entering overbought territory with its relative strength index (RSI) slightly above 70.
Meanwhile, analysts such as Alan Santana maintain that Bitcoin needs more confirmation to determine the bull market’s significance. Therefore, as things stand, the flagship digital asset must breach the $74,000 resistance and hold above the mark for sustained gains.
Featured image:
Jester-Flim– 11 September 2017. Digital Image. Shutterstock.
