The fourth quarter is underway and crypto enthusiasts are watching Bitcoin’s price moves closely, hoping for a fall rally. October has kicked off positively, with Bitcoin jumping over 4% to break $28,000 – its highest level since mid-August.
Many are buzzing about “Uptober,” a term referencing Bitcoin’s historical gains in October. But will this October live up to its bullish precedent?
In crypto parlance, October is dubbed “Uptober” due to Bitcoin’s tendency to post solid monthly returns. Data shows only two Octobers since 2013 saw Bitcoin end the month in the red.
By contrast, September is often called “Rektember” for its tendency towards negative returns. The psychology of these seasonal names can become a self-fulfilling prophecy as investors buy or sell based on past trends.
While nothing guarantees this October will be another Uptober, Bitcoin has started off strong, gaining over 9% in September. This momentum could carry into October if buyers remain confident.
However, market fundamentals like rising interest rates and recession fears could still override typical seasonal patterns. Uptober is based more on speculation and superstition versus sound technical or fundamental analysis.
The first few days of October 2022 have certainly been encouraging. But it’s far too early to conclusively declare this month bullish or bearish for crypto. Bitcoin’s price could easily reverse course as unpredictably as ever.
For now, all eyes are on whether Bitcoin can turn Uptober hopes into a reality. Its next price moves will determine if this month brings a treat or trick for cryptocurrency investors. But relying on seasonal strength is risky in such a volatile asset class.
Time will tell if October 2022 brings another entry into Bitcoin’s Uptober hall of fame. But savvy investors know past performance won’t dictate future results.
Source: What is Uptober?