Bitcoin Heads for a Red October With 4 Bullish Signals Still Intact

Bitcoin (BTC) is heading for a second straight losing October, down 4.10% since the month began. Yet 4 signals across price, positioning, on-chain data, and macro still lean bullish.

Galaxy and Santiment see signs of a bottom, while Glassnode data shows recent buyers have cooled off. Bitcoin’s November record, however, gives reason for caution.

Bitcoin Keeps Its Grip on the 50-Week Average

The price has slipped since BeInCrypto flagged 4 problems facing Bitcoin in early October. Its long-term chart structure, however, has held.

Galaxy research head Alex Thorn reads the 200-week average as Bitcoin’s bear-market floor and the 50-week as its ceiling. Bitcoin tested the floor in June and reclaimed the ceiling in September after 44 weeks below it.

At $79,935, BTC trades about 5% above the current 50-week average of $75,812.

Galaxy examined 4 previous reclaims following periods of at least 20 weeks below the 50-week average. In each case, Bitcoin never closed more than 8.4% below the reclaim level during the following year.

“Our conclusion is simple: we believe now is an attractive time to buy and hold bitcoin,” the post read.

The Fast Money Has Already Left the Room

Galaxy’s data also shows who sold during the downturn. Asset managers’ net long positions in CME Bitcoin futures fell 57% from the week of Bitcoin’s all-time high.