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‘Uptober’ for Bitcoin in play as BTC gains 8% in October adding $30 billion to its market cap

'Uptober' for Bitcoin in play as BTC gains 8% in October adding $30 billion to its market cap

After weeks of sustained losses, Bitcoin (BTC) is showing signs of recovery as the maiden digital asset attempts to pull the crypto sector out of the extended bear market. In this line, 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 the better part of October. 

By press time on October 29, Bitcoin was trading at $20,971, representing gains of 8.21% from the $19,379 recorded on October 1. Notably, the current price represents Bitcoin’s monthly peak after facing the possibility of correcting further below $20,000. 

Bitcoin one-month price chart. Source: CoinMarketCap

The rally in Bitcoin has also been triggered by increasing buying pressure, driving the general market to regain the $1 trillion capitalization. Notably, as of October 29, Bitcoin controlled a market cap of $402.31 billion, representing an addition of about $30.84 billion from the October 1 value of $371.47 billion. 

Bitcoin one-month market cap chart. Source: CoinMarketCap

Bitcoin still battling macroeconomic factors 

Amid the surge in value, it is worth noting there is no significant trigger for the rally, with Bitcoin battling the prevailing macroeconomic factors led by high inflation and interest rate hikes. 

Notably, with Bitcoin correlating with the stock market, the asset’s price has been weighed down by the Federal Reserve tightening policies to curb the skyrocketing inflation. At the same time, there is a bullish sentiment around Bitcoin with the notion that the Federal Reserve might slow down on its policies as the economy stares at a possible recession. 

Interestingly, several crypto analysts have projected Bitcoin is already showing signs of a breakout. For instance, crypto trading expert Michaël van de Poppe noted that the last week of October might 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 maintained that bulls have the ‘overall near-term technical advantage,’ an indicator of a possible price rally in the near term. 

“Price action this week has seen a bullish upside “breakout” from the choppy and sideways trading range of the past few weeks. A fledgling price uptrend is in place on the daily bar chart. Bulls have the overall near-term technical advantage to suggest still more upside price action in the near term,” he said. 

At the same time, there is skepticism that the current rally might be a bull trap likely to lead to a new low. 

Bitcoin technical analysis 

Furthermore, technicals appear to favor Bitcoin bulls. A technical analysis summary favors ‘buy’ at 11, with ‘neutral’ at nine, while six support selling. 

Elsewhere, moving averages are for buying at nine, with neutral at one, while selling is backed by five. Finally, the oscillators are dominated by neutral at eight, while two are for ‘buy,’ with one recommending ‘sell.’ 

Bitcoin technical analysis. Source: TradingView

What next for Bitcoin?

Overall, market participants are hoping Bitcoin will build on the historical trend of recording gains across October. For example, based on the previous Halloween holidays, Bitcoin has consistently gained over the last three years.

In this line, according to a Finbold report, 28,488 respondents from the CoinMarketCap community project that Bitcoin will trade at $21,248 during the 2022 Halloween holiday. The figure represents a drop of 65.17% on October 31, 2021, price of $61,300.

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.

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