Based on past performance, October could be a good month to invest in Bitcoin. Market watchers for cryptocurrencies have noticed that October is typically a good month for the currency. Due to growth from the previous year, early in November, it hit a record high of approximately $66,000.
Galois Capital, a cryptocurrency hedge fund known for correctly predicting the collapse of Terra’s algorithmic stablecoin UST, tweeted:
The meme was quickly adopted by other accounts with sizable followings as well.
October Effect Could Drive Uptrend in Crypto
Although the term “Uptober” is relatively new, it gained popularity during last year’s record-breaking rise. However, conventional wisdom predicts that October and November will be good months for cryptocurrencies, particularly Bitcoin.
Bitcoin’s performance in October has been positive eight times out of the last 12 months, and BTC has shown positive performance in eight of the past twelve years, with an average return of around 30%. So far, 66% of investments made in October have yielded a profit.
Coinglass data, October has historically been a positive month for the most popular cryptocurrency in terms of monthly returns. Bitcoin monthly returns. Source: Coinglass
Contrary to popular belief, the “October effect,” which predicts that October will be a losing month, only applies to traditional stock markets.
October is especially significant for cryptocurrency because Satoshi Nakomoto, the project’s pseudonymous founder, published the project’s white paper for the first time on October 31, 2008.
October Offers the Highest Returns in Crypto
Cryptocurrency strategist James Altucher, the host and creator of InvestAnswers, believes that as the year’s final quarter officially begins, October will traditionally be a strong month for Bitcoin.
James Altucher said:
“Let’s look at how October benchmarks against other months in the history of Bitcoin. Here you can see September is red August is like breakeven. But October is the third-best month historically. And that’s why many people refer to it as Uptober.”
Based on the historical return for October, he believes
Bitcoin could reach $26,000 in the next four weeks. VIDEO
According to James, October had the third-highest average monthly returns. He believes that October is historically the third-best month. As a result, many people refer to it as Uptober.
Crypto Community is Bullish for Ethereum in October
Many cryptocurrencies are trading in the green on their daily and weekly charts. It also includes
Ethereum (ETH), one of the largest tokens, which has led the crypto community to predict that the market will continue to rise by the end of October.
Coinglass data, the Ethereum price has historically performed exceptionally well in October. Ethereum monthly returns. Source: Coinglass
community votes at CoinMarketCap predicted that Ethereum’s token would trade at an average price of $1,578 on October 31, 2022, according to the most recent data obtained on September 27 using the platform’s ‘Price Estimates’ tool.
Notably, the cryptocurrency community’s forecast for Ethereum’s price, which received 2,244 votes, shows a 13.34% increase.
Bitcoin Price & Technical Outlook
Bitcoin is currently trading near the psychological level of $20,000. In my previous
Bitcoin update, I mentioned that the BTC/USD pair had formed a descending triangle pattern, extending significant resistance near $20,478.
Bitcoin failed to break above the trendline resistance and now heading south to cross below the 50-day moving average providing immediate support near the psychological level of $20,000 in this case.
Bitcoin Price Chart – Source: Tradingview
Leading technical indicators such as the RSI and moving average convergence and divergence (MACD) are above 50 and 0, still indicating a buying trend. However, the “hanging man” candlesticks pattern is signaling chances of a bearish correction today.
On the downside, Bitcoin’s immediate support level remains at $20,000, with $18,650 serving as an immediate support level below this level.
Ethereum Price & Technical Outlook
ETH is currently consolidating in a narrow trading range of $1,300 to $1,400, possibly awaiting a strong fundamental reason to trigger a breakout. On the technical side, the ETH/USD pair is trading marginally higher after recovering from the psychological support level of $1,300.
On the daily timeframe, a small ascending triangle pattern provides immediate resistance near the $1,400 level. Ascending triangle patterns have a high likelihood of breaking out on the bullish side, so the odds of an ETH’s bullish bias remain high.
Ethereum Price Chart – Source: Tradingview
As a result, a positive crossover over $1,400 may clear the way for an uptrend to extend to $1,575 or $1,650. If the price of ETH continues to rise, it might reach $1,795 per coin. Support, on the other hand, remains near $1,300 and $1,227.
New Altcoin News
In addition to leading cryptocurrencies, new altcoins are making headlines.
IMPT, a new protocol, is being developed to help businesses and people track and control their carbon footprint. The protocol is designed to reward and incentivize users for their participation. IMPT is on a presale, and it’s exhibiting a massive performance, having raised more than $1.4 million in just four days of its presale.
Tamadoge is also under the spotlight, having gained more than 300% from its all-time low of $0.01683. The first Tamadoge NFTs are now available on OpenSea, along with 100 ultra-rare Tamadoge Pets. Find The Best Price to Buy/Sell Cryptocurrency:
Cryptocurrency Price Tracker – Source: Cryptonews