The crypto market has experienced a major pullback since the summer, with a series of sharp drops in prices, executive resignation notices, and bankruptcies caused by various factors.
As 2023 is just a quarter away, all eyes are set on the final three months in a glimmer of hope that October looks brighter for Bitcoin.
Caution Ahead Of October
Bitcoin price performance might fail to approach the $20k area as October approaches. According to data from Cointelegraph Markets Pro and TradingView, BTC/USD intraday chart surpassed $19,600 on Thursday but the surge didn’t seem to remain too long.
The largest cryptocurrency is currently trading at around $19,400 at the time of writing.
The crypto market in September is certainly one of the most volatile markets on record, characterized by price swings and performances during the month.
There are uncertainties that loom over the Bitcoin price at the end of the month, leaving market participants with headaches while wondering what’s next.
Material Indicators commented on the “mother of all rug pulls” in its latest statement, saying, “Can certainly build a case for local support holding in this range, at least until the monthly and quarterly close on Friday, unless, of course, we get the mother of all rug pulls.”
It is possible that Bitcoin will go back to the resistance at $18,000 as a result of a new plunge, as suggested by the source.
Top crypto expert Kaleo anticipated that an upward trend would be observable in the month of October.
The historical price action of bitcoin over the past decade suggested a general downward trend for the month of September, but October happens to be one of the greatest months for BTC – it has been positive 78% of the time, with a median return of 28%, according to the analyst.
Long-term Bitcoin Hodlers Remain Unaffected
Despite the increased inflation rate, the market downturn, and military conflict in Europe, the confidence and trust in the future of Bitcoin somehow stays solid. Most Bitcoin investors remain unaffected by the consequences of the economic outlook and bet big on the future rally of BTC.
Data from Glassnode confirmed that the amount of hodled or lost coins just reached a 5-year high of 7,509,524.362 BTC worth approximately $341.55 billion. Amid such turmoil, it is no surprise that the confidence of Bitcoin sellers is growing and long-term investors refuse to sell at the current price.
The reason behind this hodling investment plan could refer to an unrealized loss; in other words, the loss is realized when the investment is sold. If a long-term Bitcoin holder sells the asset, he realizes a loss of about 42%, according to Glassnode data.
It’s noteworthy that Bitcoin is far away from a hedge against inflation, for the time being since it has shown poor performance when prices rise rapidly. In point of fact, the possibility of Bitcoin getting traction could lie in the monetary policy.
Billionaire Stanley Freeman Druckenmiller is of the opinion that the policies that have been implemented by the institution since 2021 are ineffective and will surely cause the economy to enter a period of contraction.
This will result in the general public losing interest in the central banks, which will ultimately lead to people investing their money in Bitcoin. In time, cryptos will rise in price.
Given that belief, the low price offers an opportunity to accumulate the asset. The hodler group remained resolute, despite the dollar’s rise. Much of the current market turmoil involves short-term investor pools.
There is zero doubt that markets are under pressure, and fear is on the rise. While Bitcoin has apparently held out below 20K, we have no idea how long the strength will last.
The post Bitcoin Closed The Month At $19k: What Does October Hold for the Crypto Market? appeared first on Blockonomi.