The cryptocurrency market appears to be returning to its upward course after being stagnant for days around the $25,000 and $26,200 levels. According to analyst Alexander Kuptsikevich, there are four signs that October could be a month of revival for the crypto market.
Firstly, he points out the excitement among investors following the approval of Ethereum futures ETF by Valkyrie, which will be available for trading starting this Friday (29). Although this approval is not the victory that many were hoping for, since they were expecting the approval of a long list of Bitcoin spot ETFs, the positive news coincided with a recovery in stock markets and a correction in the dollar, adding fuel to the fire and intensifying the market’s potential for recovery.
Secondly, Kuptsikevich highlights that the recent rise in Bitcoin allowed the asset to surpass its 50-day moving average, something that has not happened since early August. The ability to stay above this indicator will be the first confirmation of a trend reversal and will draw observers’ attention to the $27,500 region, where previous local highs are located. It is believed that a move above $28,000 will attract even more buying interest.
Thirdly, the analyst emphasizes the strengthening of Ethereum, which managed to reverse its downtrend in the ETH/BTC pair, which historically favors the altcoin market as well. This, in turn, increases retail investors’ interest in the market.
To further heighten expectations, Kuptsikevich highlights Bitcoin’s historical performance in the month of October. In recent years, October has generally been a month of growth for Bitcoin, with significant returns. Although past performance does not guarantee future results, investors tend to prepare for possible positive movements in the market during this month.
In 2013, Bitcoin saw an impressive increase of 60.79%. In other years, gains were also notable, particularly in 2017, when the cryptocurrency recorded an increase of 47.81%. Even in years of less spectacular performance, such as 2014 and 2018, October was not necessarily a month of significant losses, he states.