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Bitcoin has yet to rally in October, with many bullish supporters we are waiting for the resumption of the uptrend. Among those who closely monitor price action in anticipation of an uptrend is a well-known analyst on social media X. This analyst, who goes by the name. Ash Crypto, Recently, a striking similarity between the behavior of the current Bitcoin prices and the remarkable pattern observed at the beginning of 2023 has been highlighted. Ash Crypto pointed to a Bitcoin downtrend at the beginning of October 2023, which eventually reversed a multi-month rally to the current high.
Defining Analogous Price Action
October 2023 was a turning point for the price of Bitcoin and many other cryptocurrencies. It was this month that the crypto industry finally broke out of a long bear cycle, with Bitcoin announcing a case of renewed optimism and massive price gains.
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For the first time since January, Bitcoin’s market capitalization increased by an impressive 28.52%, leading to a change in market volatility across the industry. Although altcoins followed the same upward trajectory, their gains were small compared to Bitcoin. However, their collective impact managed to push the entire cryptocurrency market capitalization past the 1.25 billion mark for the first time since May 2022.
However, while October 2023 was the beginning of a new bull cycle, many investors did not know or forgot that the month started on a bad note. As Ash Crypto pointed outthe price of Bitcoin fell by 7.5% in the first week of October 2023. According to the BTC/USD price chart, this decline saw the price of Bitcoin drop below $26,500. However, it was soon repeated from this point. By the end of October 2023, Bitcoin had rallied to close the month above $35,000, representing a significant increase of 33% from the month’s low.
Fast forward to October 2024, and it seems that Bitcoin is repeating its pattern from last year. At the beginning of the month, Bitcoin was trading just below $64,000, which is a strong position given its recent trends. However, in the run-up to October 2023, the cryptocurrency experienced another major decline, this time dropping 6.5% in the first three days. Notably, the price briefly touched $60,750 during this period.
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What Does This Mean for Bitcoin?
If history were to repeat itself fully, Bitcoin may or may not fall slowly before rebounding. According to Ash Crypto’s projections, the same 33% surge would see Bitcoin shoot above its current high, with a monthly close between $75,000 and $76,000.
At the time of writing, Bitcoin has he recovered slowly and is now trading at $61,580. Despite this early setback, many bullish investors are keeping a close eye on Bitcoin in anticipation of Uptober coming to fruition.
The featured image was created with Dall.E, a chart from Tradingview.com