As cryptocurrencies and other risk-sensitive assets rose in Asian trading on Tuesday, Bitcoin surpassed $20,000 for the first time in over a week.
Bitcoin enthusiasts have been excited about October because the asset and market have historically done well in October, sometimes known as “Uptober.”
⛔️Remember crypto markets are volatile and nothing is assured. Therefore, before buying any coin, you must do your own research and follow your trading plan. Furthermore, you should never invest more than you can afford to lose. #dyor #notfinancialadvice #uptober
— Coti_Commander 🏴🇬🇧 (@Coti_commander) October 3, 2022
Trading cryptocurrency has yet to involve significantly more leverage than in previous rallies, causing gains or losses to become multiplied.
The Price of Bitcoin Over the Past Year
Compared to February, when the crypto was going through a rally that eventually hit a record high, the difference between Bitcoin futures and its spot price has shrunk, showing that leveraged long bets are not in high demand.
Up up #uptober
— abdulalahi@pip 💧 (@Abdul_Alahi1) October 6, 2022
Bitcoin’s price has recently surged over a long-term declining trendline that dates back as far as April 22 or last November, depending on one’s preferred method of technical analysis.
Since the beginning of this year, Bitcoin’s price has been trading flat between $18,500 and $24,500 while consolidating its way through the trendline.
Bitcoin price drawdowns from all-time highs:
Currently: -73% pic.twitter.com/3k7VNgebT5
— Reflexivity Research (@ReflexivityRes) October 2, 2022
A five-session rise in Bitcoin has occurred in five of the last seven sessions, breaking critical levels that bulls have said will spark further gains.
A 4.9% gain to $46,679 was achieved on Friday, continuing the currency’s upward trend. This summer, it dropped below $30,000 but has since increased by almost 50%.
Now that the price is outside the declining trendline, some traders feel jubilant about this recent bounce.
In light of this, it’s important to remember that the surge occurred without any significant macroeconomic changes, which is insufficient for predicting a positive outcome for bitcoin prices at that time.