Bitcoin ended September on a high note, catching the attention of experts at the crypto trading platform Bitfinex. They believe this could indicate a promising October for the leading cryptocurrency.
Historically, when September sees gains, it often heralds a positive October for Bitcoin.
The Bitfinex team observed a 6.1% growth in the overall crypto market capitalization in September, marking one of the few times the month concluded on a positive note.
The latest Bitfinex Alpha report emphasizes various factors suggesting we might see heightened volatility and potential growth for Bitcoin in the next month.
Metrics from the futures market and other signs also suggest potential notable price swings, especially over extended periods.
Options data reveals higher volatility expectations
In the same report, the experts noted that the crypto options market seems to be preparing for heightened market volatility.
Typically, when implied volatility exceeds past volatility, it’s a sign that traders are expecting more pronounced price fluctuations.
Strong on-chain support at current price
The report from Bitfinex draws upon on-chain data, indicating robust support for Bitcoin’s existing price brackets.
Persistent long-term holders seem committed to their stakes, adding to the digital currency’s resilience.
Moreover, the study emphasizes that Bitcoin retained for durations spanning 6 to 12 months has remained largely consistent. Meanwhile, BTC stocks older than three years have seen little activity since February 2023.
These patterns insinuate that seasoned investors are keeping their Bitcoin assets, a strategy popularly termed “HODLing” in the crypto community.
Kicking off September around $25,900, Bitcoin concluded the month just shy of $27,000, marking a monthly growth of 3.9%.