Bitcoin closes worst October since 2014: what now?
October was a disappointing month for Bitcoin, while historically it is a top month. Still, there's no need to panic.
For crypto investors, October is also known as‘ uptober ’due to the historically strong results of Bitcoin (BTC). This year has been an exception in that regard, as the month ended with a hefty loss.
Of course, we would have preferred to see it differently, but there is little cause for concern at the moment.
On Saturday, Bitcoin closed October with a loss of 7.33 percent. It was the fourth worst October month ever and also the first negative result since June.
Bitcoin started the month around $83,600 and ended at $77,450. On October 2, the highest point of almost 87,200 dollars was reached.
Only in the early years has the cryptocurrency performed worse with losses of 34.73 percent in 2011, 11.08 percent in 2012 and 12.57 percent in 2014. November, like October, is historically one of the best months of the year with a median increase of 10.92 percent.
The rising oil price due to the absence of a deal between Iran and the United States has been a major reason for the decline.
Just like the carnage in tech stocks due to growing doubts about when and how the gigantic AI investments will be recouped. Many tech and AI companies are dealing with a huge mountain of debt. Due to higher interest rates, these financing costs weigh heavily on profitability.
Bitcoin has shown a lot of resilience, because the Nasdaq 100 has fallen almost as fast with a loss of 6.88 percent. Even gold, the most valuable asset in the world, lost 6.87 percent. And then to realize that crypto giant Binance has lost over $6 billion in the biggest crypto hack ever.
Bitcoin's monthly chart still looks positive. After the previous outbreak, the price has fallen back to the top of the old range, which is now being tested as support. Even the robbery at the world's largest crypto platform couldn't push the price back into that range.
The structure shows many similarities with early 2023. Even then, the upper end of the range was converted into support, after which Bitcoin started an impressive rally that lifted the price to new records. At the time, however, it took a while before the accelerator was really depressed.
Bitcoin has now closed in red for four weeks in a row, which is the worst run since May. At the same time, it is a big contrast to the previous declines of the past year, which is yet another argument that we are now in a bull market.