Bitcoin started the current month with traders having a lot of optimism. These beliefs were based on previous performances from the asset. October was the best performing for the apex coin and traders expected the trend to continue.
However, the first half of the 30-day period dashed every hope of a massive price change. Based on its movements, we noticed that it was trading sideways for the most part of the session. It ranged between $19k and $20k.
Nonetheless, it had bullish moments. One such was on the third and fourth days of October. The apex coin gained more than 6% during this period. Following these price increases, many predicted that the tenth is performing as it should.
One of the predictions that made rounds at the time was that BTC would retest $21k and dip to its lowest afterward. It failed and the cryptocurrency returned to its previous trend. In what may describe as boring, it maintained the $19k support with one or two slips below.
As a result, interest in the market gradually dwindled. It affected several areas of the entire crypto market as participation in the derivatives market reached a record low. Open interest dropped, as well as the liquidation data. Nonetheless, it picked up momentum as the month progressed.
Liquidation Exceeds $1 Trillion
The first fifteen days of October saw derivatives participation plummet. During this period, REKT funds from both long and short positions averaged $2 million daily. The highest liquidation was $48 million at the time.
As price volatility rose, the sector under consideration saw more participation. For example, some days back, liquidated positions exceeded $350 million. The same thing happened the next day.
In total, REKT funds were more than $1 trillion; illustrating the low volatility had on this key aspect of the market. Other events took place during this period. It is also noteworthy that the top benefited from several fundamentals.
Key Fundamentals
The market felt the impact of both bullish and bearish news. On the positive side, the stories that made headlines during the period under consideration were mostly of crypto proponents, taking up leadership roles in key infrastructures.
One such is Rishi Sunak. This pioneer became UK Prime Minister. In response, we observed a massive change in the global cryptocurrency market cap. We noticed the same effect when Elon Musk closed the Twitter deal.
On the other hand, the news of an increase in the Consumer Price Index (CPI) caused a massive downtrend. As a result, BTC dipped to a low of $18,0000 but recovered after a rebound. It broke its sideways trend during the second fifteen days of the period under consideration.
Bitcoin Sees a Late Uptrend
One of the predictions at the start of the month was that bitcoin would end the session with notable gains. Nonetheless, a previous outlook stated that it is in a make-or-break stage. The chart below shows the reason for this conclusion.
We observed that asset was forming a bearish flag that ran from April to September. Many expected that it would break above the pattern. This would also result in massive increases for it.
However, after breaking the trend on October 5, it failed to surge. There were also indications of massive retracements if BTC had a massive rally. Due to the sideways trend, the apex coin was set to end the month with no notable gains or losses.
This changed last week as massive bullish fundamentals came pouring. For the first time in fourteen days, it retested and briefly flipped the $21k resistance. It also made further attempts at $22k.
However, it could not maintain the $21k support. It closed the intraweek session with gains exceeding 5%. A look at the monthly chart suggested that if the sideways trend continued, BTC would end the 30-day session with no significant price change.
We noticed a more than 5% increase in the candle representing the last thirty days. A look at the indicators paints a clearer picture of what happened during the period under consideration.
Fairly Stable Metrics
Due to price ranging, indicators were also stable with no much movement. For example, the Relative Strength Index trended between 43 and 50 for the most part of the 30-day session. We noticed the same outcome on MACD.
We noticed that the metric only had three major crossings during the period under consideration which had little impact on bitcoin. However, it is above 0 for the first time since August.
The Moving Averages also experienced two attempts with a flip of the 50-day MA last week Tuesday. We may conclude that despite the sideway trend for the most part of the month, BTC ended it with fresh prospects.
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Source: https://coinfomania.com/october-dump-bitcoin-cling-to-5-gains-thank-to-late-uptrends/