QCP Capital forecasts potential bitcoin rally in October after a near-term price dip
Quick Take
- October has typically been a strong month for bitcoin — averaging nearly 30% gains during the month in eight of the last nine years — according to QCP Capital analysts.
- In light of this, the analysts suggest that the historical trend offers a strategic opportunity for near-term accumulation with the potential for profit-taking in October.
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 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," QCP Capital analysts said.
In contrast to this, the analysts added that September is typically a bearish month not just for 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," the analysts said. If this seasonal trend plays out again this year, the analysts said it would be strategic to accumulate bitcoin during the September dip and take profits in October or toward the year-end.
Increased call buying in the options market
Tuesday's QCP Capital report highlighted that derivatives market participants are actively positioning themselves based on seasonal trends. Analysts noted a substantial purchase of call options contracts with a strike price of $80,000, set to expire in December.
"There is consistent call buying in the vol market, and the desk has observed another 150 contracts at $80,000 strike price December calls lifted in Asia morning," the analysts said.
The price of bitcoin increased by 1.2% in the past 24 hours to trade at $59,136 at 9:02 a.m. ET. Bitcoin dominance is at 54%, and ether dominance is at 14%, according to CoinGecko data.
Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures.
© 2024 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
