Bitcoin Begins "Uptober" with a Bang: Can it Maintain the Momentum?

The cryptocurrency world is abuzz with the latest movements of Bitcoin as it kicks off the month of "Uptober" on a high note, cruising past the $28,000 mark.

by Faruk Imamovic
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Bitcoin Begins "Uptober" with a Bang: Can it Maintain the Momentum?
© Getty Images News/Mario Tama

The cryptocurrency world is abuzz with the latest movements of Bitcoin as it kicks off the month of "Uptober" on a high note, cruising past the $28,000 mark. The significant question now lingering in the minds of crypto enthusiasts and skeptics alike is: Can Bitcoin sustain this momentum?

A Rollercoaster September Ends on a High

September witnessed a myriad of ups and downs in Bitcoin's price trajectory.

Market observers were bracing for an unpredictable monthly close given the mixed performance of Bitcoin throughout the month. However, defying the odds, the close turned out to be favorable for the bulls, setting the stage for what might be a compelling October.

Historically, October has often proven to be a favorable month for Bitcoin's price performance, causing a palpable sense of anticipation about the possible outcomes in the ensuing weeks. While many look to macro triggers to glean insights, the beginning of October seems to be a lull in U.S.

macroeconomic data. Coupled with the U.S. government successfully dodging a shutdown at the eleventh hour, the primary focus returns to Bitcoin itself.

Bitcoin's Fundamentals: A Mixed Bag

Interestingly, the surge in Bitcoin's spot price hasn’t found a parallel in its underlying fundamentals.

As of the start of October, mining difficulty is set to decline during its next automated readjustment, scheduled for October 2nd. This divergence raises questions about the sustainability of the recent surge. However, the recent move has not been without its silver lining.

Bitcoin recorded its highest weekly close since mid-August, effectively neutralizing some of the weaker performances observed earlier. Michaël van de Poppe, CEO and founder at MNTrading, expressed his optimistic sentiment on the day, sharing with his X (formerly known as Twitter) subscribers, “Bitcoin back up to $28,000.

Might fully retrace, but the trend is clearly upwards. Every consolidation of Bitcoin will be a period where altcoins start to follow the path of Bitcoin. This quarter will be fun!”

Yet, some market experts are preaching caution. A prominent trader, Skew, highlighted potential pitfalls using exchange order book trends as evidence. "Pretty wide order book here in terms of available/resting liquidity," he noted, suggesting that a significant volume would be required to stabilize the current price point, particularly between the $28,000 and $29,000 mark.

With the crypto market's inherent volatility, "Uptober" promises to be a riveting chapter in Bitcoin's ongoing saga. Whether it rises to new heights or faces setbacks, one thing's for sure: the crypto community will be watching intently.

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