Bitcoin (BTC) is up more than 10% this week as institutional demand continues to rise, supporting the theory that strong gains typically follow September lows.
In fact, historical data shows that October tends to bring high returns for cryptocurrencies (more than 20% on average), giving the month its distinctive nickname “Uptober.”
This year’s situation is particularly interesting as Bitcoin prices are supported by more than favorable macroeconomic conditions, including the US government shutdown following the failure to pass a funding bill on Wednesday, October 1st.
Considering all the positive factors coming together at the same time, it is not surprising that the valuation of “digital gold” has increased significantly in the past few days. In fact, since the beginning of the month, Bitcoin’s market capitalization has risen from $2.276 trillion to approximately $2.4 trillion as of Friday, October 3, at the time of writing. coin market cap. This is an increase of $124 billion, or nearly 5.5%.
As of this writing, BTC is trading around $120,280, up just 0.60% on the daily chart.
Bitcoin is on the rise
The return to the $120,000 level has also boosted investor confidence, particularly in the exchange-traded fund (ETF) sector. For example, BlackRock alone had inflows of $446 million on Thursday, October 2nd.
The activity of large holders is also noteworthy, as whales purchased more than 30,000 Bitcoin BTC (worth about $3.6 billion) in 48 hours.
Of course, more appetite could fuel momentum even further, pushing gains to new all-time highs (ATH) in the final quarter. As a result, Citigroup raised its year-end target for the asset to $132,000.
However, it is important to maintain the level of $120,000. Immediate resistance lies at $122,000, just below the August 14th ATH of $124,474. Conversely, a fall below $120,000 could result in further losses at $117,000, potentially stalling the rally temporarily.
Featured image via Shutterstock