Bitcoin has seen a rocky start for October, dropping about 6% in just the first few days of the month. This sudden drop is mainly due to the rising tension in the Middle East, where Iran fired around 200 missiles at Israel on Oct. 1.
Usually, October, or “uptober,” as it is called in the crypto space, is often a strong month for Bitcoin, with at least an average gain of around 20% over the past decade.
Many in the crypto space are hopeful that the month will boost the price, with some even predicting it could reach $100,000 by the end of the year. But the recent conflict has made those predictions less certain.
Right now, bitcoin is trading at $61,690, a 2% increase in the last 24 hours but with a 24% drop in total market volume to $31 billion.
Market Reactions and What Analysts Are Saying
However, Sean McNulty, a trader at Arbelos Markets, thinks this drop is just a temporary setback. He believes that the recent cuts in interest rates by the Federal Reserve might help Bitcoin recover soon.
McNulty also pointed out that the outcome of the upcoming U.S. presidential election could influence crypto regulations. Depending on the outcome, the new government might introduce a more crypto-friendly regulation, which can boost the market.
“The seasonal trend of October being Bitcoin’s best month is still alive,” McNulty said
Additionally, Bitcoin’s price is moving more in sync with the stock market lately. This means that events impacting the stock market are also affecting Bitcoin’s value. The link between Bitcoin and stocks is now stronger than it has been in over a year.
Could Bitcoin Bounce Back This Month?
But despite the rough start, there’s still potential for a rebound. Historically, Bitcoin has only experienced two negative Octobers since 2013. Most gains in the month tend to happen after the first week, suggesting there could still be room for a recovery later this month.
Bitcoin Archive, a crypto analyst, recently projected that Bitcoin “could “break $100,000 by the end of the year.” According to his prediction, Bitcoin price could hit around $80,000 this month, followed by a bigger gain of $89,000 for November and then $106,718 for December.
However, veteran trader Peter Brandt said Bitcoin would need to break a key resistance level before it could enter into a bullish phase.
Based on his analysis, the first level sits at $70,600 and the second is Bitcoin’s all-time high of $73,800. Brandt said that breaking above the $71,000 level is important as it could change the trend of the market.
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