Bitcoin is just over one week away from the October monthly close, taking place on Halloween night. Although the night is known for candy, scarces, and tricks, if the leading cryptocurrency by market cap can close above $14,000, investors will be in for one heck of a treat.
Bitcoin October Monthly Candle Close Could Result In New All-Time High
Bitcoin price is trading well above $12,000 after a $1,000 intraday candle earlier this week that sent the cryptocurrency to a new 2020 high. The top-ranked crypto asset, however, failed to set a new higher high over its 2019 peak, if you measure wick to wick.
But 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.
Related Reading | Crypto Analyst: Altcoins To “Tank” While Bitcoin Runs For All-Time High
This makes the October 31 monthly close more than just Halloween – it puts the potential bull run on the line.
Bitcoin flips high timeframe resistance as support, aims for new all-time high monthly close | Source: BTCUSD on TradingView.com
The line chart also shows 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 tend 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 again.
Current cryptocurrency market cycle matches previous bull breakout | Source: BTCUSD on TradingView.com
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 price couldn’t close its first few monthly attempts at a new all-time high until the year turned anew. At that point, the election uncertainty 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?
Featured Image From Deposit Photos, Charts From TradingView.com