Another Red Month in Store for Bitcoin? Historical Data Says Most Likely
After having a rough time in the last 10 days of September and ending the month at around $7,730, the price made its ascent as we entered into a new month.
Q3 has come to an end and Q4 had a slow but positive start as we made it to $8,500.
Trading volume, however, has taken another drop, going from just above $400 million, for the past couple of days to $327 million, at the time of writing.
As can be seen in the above chart, top altcoins are following the flagship cryptocurrency with the exception of Litecoin (up by 0.37%), Cardano (0.80%), IOTA (0.09%), Ontology (1.51%), and BAT (2.31%) with Link (6.26%) leading the gains.
Bitcoin dominance as such has dropped just under 70%, as per TradingView.
More Pain Ahead for Bitcoin?
As we reported analyst Don Alt isn’t convinced that Bitcoin has found the bottom of this correction yet, at least until bulls prove themselves. Moreover, other experts and traders are still wary of the market and sees $7,000 as a possibility.
Now, if we take a look at the Bitcoin’s historical chart, this month doesn’t infuse confidence either.
As per the chart shared by analyst Timothy Peterson, three out of four times when September printed a red month, October ended up being a red one too.
“September kept its reputation as a horrible month” said Peterson while warning “I would be cautious about October.”
“When August & September are negative, October has ALWAYS been negative (a momentum effect),” he added.
In 2011, 2014, and 2018, October recorded losses of about the same percentage (slightly less) as registered in Sept.
2017, the year of bull run was the only exception when Bitcoin posted huge gains of over 47% despite recording loss of 8.5% in Sept.
Meanwhile, about the ongoing price movement, trader Scott Melker says,
“price is struggling to break back above the EQ of the descending channel that it has been in since the top of the parabolic run.”
Everyone would feel more bullish if BTC price moves the 100 EMA and EQ of the channel, he added.