Amid the crypto winter that got negatively impacted by several macroeconomic factors, like the recently published CPI data, some prominent crypto analysts believe that the crypto market is all set to initiate a small bullish rally in the upcoming weeks.
Justin Bennett, a well-experienced cryptocurrency trader and analyst, predicts that two leading cryptocurrencies: Bitcoin and Ethereum, are waiting to kick off a bullish rally by the end of this month.
Bitcoin Will Leave Bears In Disbelief!
The analyst noticed that Bitcoin has recently broken its diagonal resistance that once pushed the entire crypto market, including BTC, under a bearish trend since November 2021.
Justin said, “BTC reversed today right from the linear trend line from the all-time high.” The diagonal pattern of Bitcoin’s high price trend touches $19,400, which broke on 3 October.
The analyst believes it can act as an indicator of Bitcoin’s bullish rally by the end of October. According to him, Bitcoin is projected to see an uptrend of 40% and reach a target of $27,000.
Justin also analyzed Bitcoin’s inverted chart to cross-check his analysis from different scenarios. According to his research, bitcoin may attain the target price by the end of December 2022.
However, Justin warned investors that bitcoin could witness a short-term downtrend and trade below $19K before starting its bullish rally. Elaborating on this, Justin said, “There’s a liquidity gap at $18,500.
Markets are still sideways with lower wicks to fill, and we’re going into a weekend. Not to mention the deviation above $19,540.”
Uptober: October’s Uptrend Effect On Crypto Market
Justin Bennett stretched his analysis further and predicted that Ethereum is also forming a bullish structure as it managed to recover from its crucial support level of $1,100 on 13 October.
The analyst stated, “What a bullish reclaim from ETH. Bears in disbelief. Send it.” At the time of writing, Ethereum is trading at $1,286, with a rise of 0.5% from yesterday. Based on Justin’s analysis, Ethereum is predicted to hit $1,480 in the coming days.
Looking at the past performance of the crypto market, October can turn out to be an astronomical month for crypto investors. Crypto analysts view this month as ‘Uptober,’ which can be profitable for the entire market, specifically for Bitcoin and Ethereum.
According to Coinglass data, October has been historically positive for Bitcoin and Ethereum, with an average return of 30% and 6%, respectively, since their inception.
Another prominent crypto strategist, James Altucher, said, “Let’s look at how October benchmarks against other months in the history of Bitcoin. Here you can see September is red August is like breakeven.
But October is the third-best month historically. And that’s why many people refer to it as Uptober.” James also predicts that Bitcoin can reach $26K following its historical price movement in October.