We started the month of October and we continue with the bear market. Inflationary rates and unemployment rates continue to not give us good projections for what is to come in the next few months.
Many analysts say that the bear market will continue, and that the way things are going, bitcoin will continue to sink to 10K. But from my perspective I don't think we are going to go as low as they claim. For bitcoin to reach those levels other catastrophes would have to happen like the ones that are happening now, another war, another pandemic, something that we can't imagine or predict that would end up ruining the economy so much to make bitcoin reach that price. Something that is not impossible, but has a very low probability of happening.
Bullish October
If we look at the 2021 chart, October was a great month for cryptocurrencies, where bitcoin surpassed 60K. Even though we were in other conditions, the upside sentiment is what matters. Everything is based on impulses and corrections, and in this market, traders are very impulsive and we have to know how to take advantage of those moments.
The momentum it had in that year was incredible, it was the beginning of the best bullish season that cryptocurrencies could have had. Many factors had an influence, but the truth is that the growth was very big.
And we have to take into account that this type of event repeats itself constantly. If we go back to 2020, we can also observe the same increase of bitcoin in October, only this time it occurred from the second week of the month. Although this rise was not as incredible as the one in 2021, we can see that it follows an impulsive pattern of always wanting to accumulate in these months, possibly because many are starting to get paid Christmas bonuses, who knows.
By this I do not mean that we are going to go back to 40K bitcoin, but what I do mean is that we can prepare ourselves to have a short-term income for the next month. It is not possible to calculate how far it can go up, but what is certain is that this event should be fulfilled and increase some points even if they are temporary. We have to remember that we are still in an unstable market and with a trend that is not clear, anything can happen, but you can always try to predict.
After this rise, bitcoin may make a big pullback to 17K or 15K, that scenario I see much more likely until the unemployment and inflation rates are not solved, we are still in a very tight economic framework due to the damage we have received from previous events. Until that scenario is overcome, I think it's going to be very difficult to see bitcoin at its best again.
However, we know that BTC is in its early stages and every storm has its dawn, we just have to loiter and sell when it's due, after all, blockchain technology is here to stay.