By October 2nd, BTC had pulled back nearly 4% to hit the lowest price point recorded throughout the month, at $10,364.
A significant number of buy orders were filled around this support level. The spike in demand helped propel prices to $11,736, representing a 13.24% upswing within ten days. Some market participants appear to have taken advantage of the rising price action to realize profits, which caused prices to retreat 4.56%.
By October 16th, Bitcoin was back around $11,200, providing an opportunity for sidelined investors to get back into the market. Those who actually were able to buy around this price level saw their investments move into the green quickly as the bellwether cryptocurrency did nothing but rise throughout the rest of the month. Not only was BTC able to break out of the channel where it was contained, but surpassed the target presented by this pattern.
Indeed, bouncing off the $11,200 support level allowed Bitcoin to surge by nearly 26% and make a new yearly high of $14,100 on October 31st. Given the significance of this milestone, BTC retraced by 2% to close the month at $13,805. Investors were able to obtain a monthly return of 28%.
Ethereum Sets Up the Ground for a Massive Breakout
While Bitcoin took the spotlight of the cryptocurrency market during October, Ethereum built the foundation for a major price movement. The smart contracts giant spent the month forming an ascending triangle within its 1-day chart. This market behavior suggested that ETH was going to catch up with the pioneer cryptocurrency later on.
As the monthly trading session began, Ether took a 7.64% nosedive towards the triangle’s hypotenuse. Prices went from opening at a high of $370 to hit a low of $322 on October 7th. However, this support level was able to keep falling prices at bay and acted as a rebound zone.
What came next was a 19% rally that saw Ethereum rise towards the triangle’s x-axis at $395.5. Such a considerable resistance barrier was able to hold and reject the upward pressure. Thus, ETH was forced to pull back nearly 9% to a low of $360.5.
Regardless of the rejection, the bulls did not loosen the grip on Ethereum’s price action. As buying pressure continued accelerating, the second-largest cryptocurrency by market capitalization jumped to a monthly high of $422, suggesting that it was breaking out of the ascending triangle. Nonetheless, prices retraced back inside this technical pattern indicating that it was all part of a fake out.
Ethereum was able to close the October at $386.3, providing investors a monthly return of 7.40%.
A New Crypto Market Bull Run
The impressive price action Bitcoin and Ethereum enjoyed throughout October seems to have set up the base for what could be a new bull run in the cryptocurrency market. These cryptocurrencies face little to no resistance ahead from an on-chain metrics perspective. Therefore, there seems to be a lot of room to go up.
If the buying pressure seen in October spills over November, Bitcoin would likely take aim at the $16,500 threshold. Moving past this psychological resistance barrier may ignite FOMO among market participants sening prices to $20,000 or higher. For Ether, a similar price action can be expected. As speculation mounts around ETH 2.0, prices will likely surge towards $500 or $800.
Konstantin Anissimov, Executive Director at CEX.IO
This article was originally posted on FX Empire