Overview
- Bitcoin is currently valued at $115,542, which is nearly 1% higher than the crucial $114,200 monthly open threshold.
- Technical analyses indicate bullish momentum following a significant correction earlier this month.
- Market sentiment remains robust, but potential influences from the upcoming Federal Reserve meeting and U.S.-China trade discussions could impact direction.
October has been a turbulent month for Bitcoin traders, despite the traditional expectation of “Uptober” gains.
Historically, October has favored Bitcoin, with 10 of the last 12 years showing positive results and average monthly gains exceeding 20%. So far, Bitcoin has only increased by 1.14% this month, according to Coinglass data.
Bitcoin surged past $123,000 early in October but then dropped to $107,000 in the middle of the month—a 13% correction that erased substantial gains quickly. It has since rebounded to around $115,000.
Currently priced at $115,542, Bitcoin has remained above this significant level despite volatile trading. The key question for traders is whether this “Uptober” will actually yield gains.
Technical Analysis: Building Strength Among Bulls
Will Bitcoin finish October positively? Our analysis based on a four-hour candlestick setup indicates it may hold gains above $114,200 rather than fall below it.
The Average Directional Index (ADX) indicates a strong trend at 32.14, suggesting persistent momentum. Meanwhile, the Relative Strength Index (RSI) at 69.05 indicates that Bitcoin is nearing overbought territory, which allows for further increases before potential corrections.
The Squeeze Momentum Indicator shows a “bullish impulse,” signaling an upcoming upward movement following a period of low volatility. Additionally, Ichimoku Cloud analysis indicates that Bitcoin is trending above supportive levels, suggesting trend continuity rather than reversal.
If Bitcoin maintains its current support, even at its lowest, it remains $622 above its opening price from October, indicating slight positive movement.
A Positive Outlook for October
The technical indicators suggest Bitcoin has a good chance of closing above $114,200 this month, potentially resulting in minor gains despite the fluctuations.
Current trends and multiple confirming indicators point to a likelihood of Bitcoin moving sideways or higher rather than sinking below the monthly opening prices.
Immediate support levels are approximately $114,000 to $114,500, while a breakdown below these levels seems improbable based on current bullish indicators and overall positive market sentiment.
Finally, traders should be aware of potential volatility around the Federal Reserve’s announcement, with Bitcoin requiring support above $114,000 during possible fluctuations.
Disclaimer
The views expressed are for informational purposes and don’t constitute financial advice.
