Despite the considerable drop from its USD 60,000 level in October 2021, some analysts believe it may rise significantly this month. Although Bitcoin struggles to maintain the USD 19,000 level, it emerges as a viable alternative hedge against the dominance of the US dollar.
Bitcoin (BTC), the pioneering cryptocurrency, reached an average price of USD 58,051 in October 2021. This year, on the first day of the same month, it is trading at less than one-third of its all-time high.
After trading above USD 60,000 for 16 consecutive days in October 2021, Bitcoin aims to regain the USD 20,000 level. Despite that considerable drop, some analysts believe it may make a significant price movement this month.
In October last year, Bitcoin reached one of its highest prices before reaching its all-time high in November. After that, it briefly traded above the USD 68,000 level.
The first cryptocurrency by market capitalization closed in October 2021 at USD 66,109. Since October 15th, it traded above USD 60,000 for 16 consecutive days.
Considering those facts, market analyst Jim Wyckoff was right to say that the value of cryptocurrencies may jump significantly this month.
The Volatility in the Price of Bitcoin Is Rising
The US dollar currently has dominated other global fiat currencies like the British Pound (GBP), the Euro (EUR), and the Japanese Yen (JYN).
Because of that dominance, Bitcoin stands out as a viable alternative hedge against the American fiat currency.
Wyckoff considers that this development stabilizes the price of Bitcoin as it struggles to maintain the USD 19,000 level before rising significantly.
However, the predictions are still far from the achievement of the pioneering cryptocurrency in October 2021.
The Price of Bitcoin Aims to Regain the USD 20,000 Level
September 2022 was a terrible month for Bitcoin, which only managed to set a high of around USD 20,000.
Michael Van de Poppe, a cryptocurrency trading expert, said the price of Bitcoin might be around USD 19,600. However, he pointed out that it has to hold the USD 19,300 level for that to happen.
However, the crypto community shows more optimism about Bitcoin, saying its price may close at USD 22,857 in October. If the pioneering cryptocurrency breaks out of the bearish market and starts a bullish rally, it may achieve that.
Since Bitcoin faced difficulty scaling and holding at USD 20,000, it is now focusing on reclaiming that level. The leading crypto asset has historically proved capable of resuming its previous all-time highs.
Meanwhile, Bitcoin is trading at around 19,325 and has accumulated a 0.8% loss over the last 24 hours. While its daily trading volume is above USD 30.94 billion, its market capitalization is about USD 370.38 billion, according to CoinGecko.
Investors should research Bitcoin or any other cryptocurrency before buying it to know their all-time high, behavior, and possible future price. That will allow them to find the most convenient investment opportunity to minimize the risk of losing money.
By Alexander Salazar
