This Friday (30) Bitcoin followed the predictions and ended another month of September in the red. However, the decrease was not so great compared to previous years.
Moreover, given the pressure from the Fed’s monetary policy, we can say that bitcoin has held up and returned to rally shortly after investors feared a decline due to the rise in US interest rates.
In the months of October, Bitcoin has a great track record. From the last 9 months, seven of them presented profits to investors. The bad news is that this may not happen again.
Bitcoin’s “Green October” Trap
Earlier figures appeal to investors at first glance. Overall, October is one of the best months for Bitcoin. At its peak, it shot up about 60% in 2013, 48% in 2017 and 40% last year. A big contrast with the months of September.
However, there is another, more hidden, pattern in this data that could trap investors.
The only two times Bitcoin showed a monthly decline in October was just after an excellent year for Bitcoin.
For example, Bitcoin rose 9,000% in 2013 and fell ~13% in October 2014. Already in 2017, BTC rose by 2500% and the following year recorded losses in October.
Therefore, it is worth remembering that Bitcoin had a major rally last year and that this bearish pattern hidden behind another bullish pattern could be a danger for the month ahead.
In any case, past data is no guarantee that a particular pattern will repeat itself in the future. But all the information can be put together for a more complete analysis of Bitcoin price.
No year-end rally for Bitcoin
Therefore, Bitcoin is unlikely to present a year-end rally as it has at other times. After all, in addition to the above pattern, it is worth remembering that investors avoid riskier investments.
Either way, such bouts of fear are great for anyone who thinks long term and wants to collect fractions of bitcoin at a big discount. After all, the worst seems over and the market is recovering well from the Terra (LUNA) fiasco and the bankruptcy of other companies that had to liquidate their bitcoins against their will.
Finally, the entry of major players such as BlackRock and other Wall Street giants is also reason to believe in a recovery of the largest cryptocurrency in the market. So it’s good to be prepared, even for the improbable.
Source: Live Coins
John Cameron is a journalist at The Nation View specializing in world news and current events, particularly in international politics and diplomacy. With expertise in international relations, he covers a range of topics including conflicts, politics and economic trends.
