"Bitcoin's Decline Cannot End the 'Uptober' Opportunity"

Bitcoin (BTC) has pulled back to $121,000 due to short-term selling pressure, but analysts indicate that the bullish sentiment continues. On the last trading day of the week, the price of Bitcoin fell to these levels after some investors took profits from the $126,000 record level reached at the beginning of the week. However, this pullback does not indicate a change in market trend.

Justin d’Anethan, an analyst at Arctic Digital, described the recent drop as a "pause, not a pivot," emphasizing that short-term investors have closed their positions to realize profits. D’Anethan also noted that leveraging positions taken by traders have been liquidated, but that long-term investors have not moved their coins. The current balance of Bitcoin on exchanges is at its lowest level in six years, indicating that the selling pressure remains weak.

Vincent Liu, CIO of Kronos Research, stated that the current market structure is "mixed but resilient." Liu expressed that the expectation of "Uptober" continues as long-term investors still tend to buy. Since the beginning of October, Bitcoin has gained about 6.7%. Liu noted that historically Bitcoin has recorded an average increase of 22% in October, while Ethereum (ETH) typically shows an increase of around 5%. This reinforces the positive seasonal expectations referred to as "Uptober."

D’Anethan stated that the overall outlook for October remains bullish, although the movement may proceed slowly. He pointed out that if inflation data comes in positively or if the Federal Reserve (Fed) signals a rate cut, Bitcoin could regain strong upward momentum. He emphasized that the market structure is healthy, with low leverage usage, strong spot demand, and available capital on the sidelines. Presto Research analyst Min Jung suggested that investors are currently facing a “notable lack of narrative” and should carefully monitor macroeconomic data and Fed decisions. In conclusion, it is crucial for investors to closely follow the situation and potential market movements.