October’s Bullish Bitcoin Seasonality

According to analysts, October has generally been a strong month for Bitcoin, making it an opportune time to accumulate during seasonal price dips in September.

October’s Performance

“October has the strongest bullish seasonality, with Bitcoin showing positive returns and an average gain of 22.9% in eight out of the last nine Octobers,” stated QCP Capital analysts.

In contrast, they noted that September typically sees bearish trends, not just in cryptocurrencies but across all asset classes. “Bonds have been lower in eight out of the last ten Septembers, and gold has been lower every year since 2017,” they added. If this seasonal trend persists this year, it would be advisable to accumulate Bitcoin during September dips and take profits in October or toward year-end.

Increased Call Buying in the Options Market

Tuesday’s QCP Capital report highlighted that derivatives market participants are actively positioning based on these seasonal trends. Analysts noted a significant purchase of call options contracts with a strike price of $80,000, expiring in December.

“There is consistent call buying in the volatility market, and our desk observed another 150 contracts at $80,000 strike price December calls lifted in the Asia morning,” the analysts remarked.

As of 9:02 a.m. ET, Bitcoin’s price increased by 1.2% over the past 24 hours, trading at $59,136. Bitcoin dominance stands at 54%, with ether dominance at 14%, according to CoinGecko data.