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Bitcoin has yet to rebound in October, with many optimistic supporters while waiting for resumption of an upward trend. Among those closely monitoring price action in anticipation of an uptrend is a well-known analyst on the social media platform X. This analyst, who goes by the name Crypto-ashes, recently highlighted a striking similarity between Bitcoin’s current price behavior and a notable trend seen earlier in 2023. Ash Crypto highlighted Bitcoin’s decline in early October 2023, which eventually reversed into a multi-month rally to reach its current historic peak.
Explain similar price action
October 2023 was a turning point for the price of Bitcoin and many cryptocurrencies. It was during this month that the crypto industry finally emerged from a long bear cycle, with Bitcoin announcing renewed optimism and significant price gains.
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For the first time since January, Bitcoin’s market capitalization jumped 28.52%, triggering a shift in market dynamics that rippled across the entire industry. Although altcoins followed a similar upward trajectory, their gains were modest compared to Bitcoin. However, their collective impact was able to push the entire cryptocurrency market capitalization beyond the $1.25 trillion mark for the first time since May 2022.
However, even though October 2023 marked the start of a new bull cycle, what most investors don’t know or have forgotten is that the month started on a negative note. As Ash Crypto highlightedthe price of Bitcoin fell by 7.5% during the first week of October 2023. According to the BTC/USD price chart, this drop saw the price of Bitcoin fall below $26,500. However, it quickly bounced back from that point. By the end of October 2023, Bitcoin had rallied to close the month at over $35,000, representing a remarkable 33% increase from the month’s low.
Fast forward to October 2024, and it appears that Bitcoin is once again repeating the pattern of the previous year. At the start of the month, Bitcoin was trading just below $64,000, a strong position considering its recent uptrends. However, in a move similar to that of October 2023, the cryptocurrency saw another sharp decline, this time falling 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 in its entirety, Bitcoin may or may not fall a bit further before rebounding higher. According to Ash Crypto’s projection, a similar 33% increase would see Bitcoin surpass its current all-time high, with a monthly close between $75,000 and $76,000.
At the time of writing this article, Bitcoin has I recovered a little and is currently trading at $61,580. Despite this early setback, many bullish investors are closely watching Bitcoin in anticipation of Uptober coming to fruition.
Featured image created with Dall.E, chart from Tradingview.com