BTC Eyes Breakout as Uptober Kicks Off with Strong Gains
Bitcoin (BTC) prices have surged 3% in the past 24 hours, and traders are optimistic about the potential for further gains. The period known as 'Uptober' has historically been a good time for cryptocurrency investments, with BTC delivering returns ranging from 5.6% to 60.8% since 2013.
Data from CoinGlass shows that October has consistently been a positive month for BTC, with the token's performance being positive in 10 out of the last 13 years. This trend is expected to continue, especially given the recent cooling off of inflation rates in the United States.
The Core PCE Price Index, a key metric used by the Federal Reserve to track inflation, came in at 0.2%, which was lower than market expectations. As a result, analysts have reduced the likelihood of a rate hike in October from 50% to 24%. This development is seen as a positive signal for BTC and may lead to further gains.
However, despite this optimism, there are still risks associated with investing in BTC. Net inflows to Bitcoin ETFs slowed down in September, which could indicate a potential pullback in prices. Additionally, the current price of $85K is seen as a key resistance level that may be difficult for BTC to break through.