Bitcoin Enters ‘Uptober’ After Exiting Q3 Flat: What to Expect

2 окт.

Crypto traders are keen to see another ‘Uptober’ — a term coined by the community to describe the outsized gains in Bitcoin prices for October. Historically, in eight of the last 11 Octobers the original cryptocurrency has pulled ahead big time. So what’s it gonna be this time? There’s a lot to unpack — let’s ride.

Bitcoin prices BTCUSD signed off for September at just over $63,000 per coin, with a modest (by crypto standards) 8% rise. But if you zoom out to wrap up the third quarter, you’ll see that prices stayed flat, tight-lipped and straight up boring. Bitcoin barely realized a gain — it went up by less than 1% for the September quarter but seesawed like there’s no tomorrow.

In true crypto fashion, the fire-breathing beast feeding on volatility went as low as $49,600 and as high as $70,000 — a wide gap of 40% from top to bottom. All who’ve been in crypto long enough are familiar with the stomach-churning volatility that can make even the most disciplined traders doubt their choices.

Speaking of volatility, traders are now bracing for what’s historically shaping up to be a solid month for Bitcoin gains. October, dubbed by crypto faithful as “Uptober,” is already here and brings with it a whole new wave of expectations.

Here’s why that is:

October 2023 — Bitcoin was up 27%.
October 2022 — Bitcoin was up 6%.
October 2021 — Bitcoin was up 40%.
October 2020 — Bitcoin was up 30%.
October 2019 — Bitcoin was up 10%.
October 2018 — Bitcoin was down 5%.
October 2017 — Bitcoin was up 50%.
October 2016 — Bitcoin was up 15%.
October 2015 — Bitcoin was up 38%.
October 2014 — Bitcoin was down 12%.
October 2013 — Bitcoin was up 69%.

What you see is that October performance is a thing — traders are already on the edge of their seats in anticipation of the next leg up. But before that, there’s a mosaic of data that needs to pan out.

Nonfarm payrolls (NFP) data (drops October 4): The good old jobs report will show how many new workers joined the US economy in September. Fairly low expectations this time — Wall Street is eyeballing 144,000 new jobs, about the same as the previous month. The NFP figure will be complemented by the unemployment rate, expected to stay flat month-on-month at 4.2%.

Consumer price index (drops October 10): US inflation is another big report that is likely to shake up the crypto landscape. For September, prediction gurus expect inflation to keep moving toward the Federal Reserve’s 2% target from an August clip of 2.5%. Lower inflation is good for solidifying prospects of interest rate cuts. And that is super good for the broader investment world, cash flows and overall liquidity across markets.

Retail sales (drops October 17): retail sales are a solid measure of consumer spending. The more people buy expensive watches and things they don’t necessarily need, the better reading this report will carry. In other words, a strong retail sales figure will breathe more confidence in investors looking to jam cash into risk assets (yes, crypto included).

All that good stuff is likely to shape the trajectory of Bitcoin prices. But — and maybe even more important in the long run — these three data dumps will help the Federal Reserve decide if it’s a good idea to chop down the interest rate and how much, following the super-sized 50-bps slash. Rate moves and broad monetary policy decisions are likely to have an impact on Bitcoin, which has been increasingly sensitive to macroeconomic winds.

For the technical minds, there is an interesting technical analysis pattern that might be worth looking into. A descending parallel channel is in the works, tracing its origins back to March 14, 2024. Fun fact: that’s the all-time record high for Bitcoin when prices peaked at more than $73,000 a pop.

Since then, prices have been gradually losing their momentum, painting lower highs and lower lows. The latest bottom (September 6), which has provided enough resistance for a solid bounce, is sitting at $52,500. The next potential leg up is expected to take the price all the way up to around $67,000 in the short term, while the next potential leg down could pressure prices to a fresh low of $51,500 in the medium term.

As traders set their sights on "Uptober," excitement is in the air, but it's not all confetti and moon rockets. October has a track record of delivering some big numbers, yes. But keep in mind that it’s not just a monthly performance number — behind it is an underlying force that has powered the price. So, should you blindly trust in historical performance? You could. But more importantly, you’ll likely be better off by preparing for what’s coming.