Bitcoin's Uptober Record: Six Years of Gains, One Year of Caution

Bitcoin's reputation as a strong performer in October has been analyzed by examining its monthly candles from Binance since 2018. The results show that six of eight Octobers ended in the black, with the strongest being 2021 at plus 39.9 percent.

The months of 2023 and 2020 also ended in significant gains, at plus 28.5 percent and plus 28.0 percent respectively. However, last October was an exception, with Bitcoin closing down 3.9 percent after a leveraged position liquidation worth more than $19 billion within 24 hours.

The lesson from this event is that leverage can be a double-edged sword, and it's essential to exercise caution when trading with high levels of leverage. The current price of Bitcoin sits above its 50-day moving average at around $78,300 and its 200-day moving average at around $75,300.

The next hurdle for Bitcoin is the upper level around $86,600, which it has struggled to break through despite inflows into US spot ETFs. The price range between $83,500 and $86,600 will be crucial in determining the direction of the month.