Bitcoin Bulls Eye November Rally As Seasonal Patterns Emerge

Crypto analysis firm QCP Capital is highlighting a potential bullish trend for Bitcoin BTC/USD in the coming months, despite September’s historically bearish outlook.

What Happened: While September typically sees downward pressure across various asset classes, including cryptocurrencies, QCP pointed out Monday that October has consistently shown strong bullish seasonality for Bitcoin, with positive returns in eight of the last nine years and an average gain of 22.9%.

This seasonal pattern has not gone unnoticed by traders.

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QCP Capital reports significant call option buying in the volatile market, including a notable 150 contracts for $80,000 Bitcoin calls expiring in December, indicating bullish sentiment among investors.

The analysis suggests a strategic approach for investors: accumulating Bitcoin during the September dip with an eye on potential profits in October or towards the year-end.

Why It Matters: Casey Grooms, co-founder of Soulbound, told Benzinga that the price of Bitcoin has dropped by 6.7% in the past seven days, falling to a low of $58,892.

He attributed this decline to macroeconomic uncertainties, particularly surrounding Federal Reserve policy decisions.

Grooms highlighted the potential for earlier-than-expected interest rate cuts, given that the Personal Consumption and Expenditure (PCE) reading, the Fed’s preferred inflation gauge, remains steady at 2.5%, close to the 2% target.

He also pointed out that other central banks, including the Bank of England and the Bank of Canada, are already implementing rate cuts.

“If these monetary policies become prevalent, global financial market liquidity is bound to increase, a trend that might crunch the buying power of fiat,” Grooms explained, suggesting potential tailwinds for Bitcoin and other cryptocurrencies.

The upcoming Benzinga’s Future of Digital Assets event on Nov. 19 is poised to be a crucial platform for discussing these trends and their potential impact on the future of Bitcoin and the wider digital asset ecosystem.

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