Bitcoin is a little bit one week shy away from the October monthly close, which the event will take place on coincidentally Halloween night.
Despite the fact that the night is known for candy, scarce, and tricks, if the chief cryptocurrency by market cap can close above $14,000, investors will be in for one damn heck of a treat.
Bitcoin October Monthly Candle Close Could Lead In New All-Time High
Bitcoin is trading well above $12,000 after a $1,000 intraday candle beginning this week that sent the cryptocurrency to a new 2020 high. The top-ranked crypto asset, though, failed to set a new higher high over its 2019 peak, if you weigh it from wick to wick.
Just when switching to a line chart, which shows only a close-by-close basis, Bitcoin is only a few hundred dollars away from setting a new all-time high.
This gives the October 31 monthly close more than simply a Halloween – it puts the possible bull run on the line.
The line chart also presents a very clear retest of resistance broken, confirming it as support before moving higher. If the leading cryptocurrency by market closes over $13,950, then the new bull market breakout could be confirmed.
Like the resistance level below, a retest is likely, then it could be off to the races for Bitcoin from there.
Will The Top Cryptocurrency Benefit From “The Halloween Effect?”
Markets are cyclical and even seasonal in their behavior. For example, there’s a saying recommending to “sell in May and go away.”
Six months later, however, due to seasonality “the Halloween effect” kicks off what tends to be higher performing months for most assets.
Q4 2017 was the quarter that took Bitcoin to $20,000 in a flash, and it could happen one more time.
According to the same monthly line chart from above, when zoomed out, shows almost the exact same structure as the last bear market and bull market breakout.
Bitcoin couldn’t close its first few monthly tries at a new all-time high until the year turned again. At that point in time, the election doubt had cleared the air, and Bitcoin at that point was free to run straight through resistance, and never looked back.
Will the Halloween effect lead to another crypto bull market once again?