In October, Bitcoin (BTC) had a good start, and historically, it’s dubbed as ‘Uptober.’ Bitcoin’s price increased by 6% monthly and 4.5% in just one week. This made Bitcoin fans happy, but some experts are discussing whether this rise will last and what it means for the market.
The price of Bitcoin has recently experienced a rally, sparking positivity among investors and enthusiasts. However, experts warn that this surge may be a temporary bear market rally, and caution is advised.
According to a new video by Cheeky Crypto, the cryptocurrency rose from its recent lows, reaching a peak just above $28,000. This upswing has been accompanied by a surge in altcoin prices, contributing to the overall positive sentiment.
Bear Market Rally or Bullish Reversal?
Despite the optimism surrounding this rally, analysts quickly point out that celebrating may be too soon. Many indicators suggest this could be a bear market rally rather than a sustained bullish reversal. Bitcoin would need to break above a critical resistance level at $28,588 to confirm a bullish trend.
October has historically been a month of bear market rallies for Bitcoin. While this recent rally aligns with past trends, it’s essential to remember that cryptocurrency markets are highly volatile and subject to rapid changes.
$20,000 as a Critical Support Level:
He mentioned that breaking above $28,588 would be a positive sign for bulls. However, they also mention the possibility of further bear market rallies in October and express concerns about the potential for Bitcoin to test the $20,000 level.
One crucial concern raised by the analyst is the possibility of Bitcoin testing the $20,000 support level. If Bitcoin fails to hold above $20,000, it could signify a more extended period of bearish sentiment and a revisit to lower price levels.