Bitcoin (BTC) is poised to experience the ‘Uptober’ phenomenon, with the original cryptocurrency on track to achieve an unprecedented monthly close.
This upward momentum began to take shape after a somewhat sluggish start to the month, as bulls attempted to push past the $70,000 barrier.
At the time of writing, the asset was priced at $71,152, indicating a monthly increase of around 14%, which would mark the highest monthly close ever recorded.
Nonetheless, the leading cryptocurrency has not been without its challenges, having faced the risk of further declines after falling below the $60,000 support level.
As October draws to a close amid Halloween festivities, if the asset wraps up the month on a high note, it will align with a historical trend observed during this time.
Apart from 2018 and 2022, Bitcoin has typically closed higher on Halloween compared to the previous year. For Halloween 2023, Bitcoin has surged nearly 110% when measured against its current values.
To highlight Bitcoin’s performance this October, a prominent cryptocurrency trader known as el_crypto_prof noted that today stands as one of the most crucial monthly closes in recent times, which could herald a new price discovery phase.
According to the trader’s insights, Bitcoin has reached levels that haven’t been seen since its peak in 2021. Surpassing this threshold could suggest that BTC is transitioning into a new bullish phase.
The Bullish Case for Bitcoin
Market momentum for Bitcoin has intensified as the significant United States presidential elections approach. Notably, the asset has risen slightly above $73,000, edging closer to its previous record high.
These upcoming elections are viewed positively, particularly if Republican candidate Donald Trump secures re-election, given his expressed support for the cryptocurrency sector. This context has seen Bitcoin rally in line with the increasing likelihood of Trump’s second-term candidacy.
Moreover, institutional interest has played a pivotal role in driving Bitcoin’s price, as reflected in transactions involving spot exchange-traded funds (ETFs). Data from SosoValue revealed that Bitcoin ETFs attracted historic inflows on October 30, reaching $893 million. This figure represents the second-largest single-day inflow ever recorded.
What’s Next for Bitcoin
With Bitcoin flirting with an all-time high, crypto trading specialist Michaël van de Poppe mentioned in an X post on October 31 that the asset has entered a consolidation phase, with technical indicators pointing to a potential price breakout.
Van de Poppe stated that as long as BTC holds above $70,000, it could indicate the potential for further bullish activity in the weeks ahead.
While Bitcoin currently displays bullish behavior, caution is advised, as the asset is approaching overbought territory, with its relative strength index (RSI) slightly exceeding 70.
In the meantime, analysts like Alan Santana argue that Bitcoin requires additional confirmation to assess the significance of the ongoing bull market. As it stands, the flagship digital asset must break past the $74,000 resistance and maintain levels above this point for sustained growth.
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