After Bitcoin’s sell-offs on September 24 and 26, another bearish candle closes the third red month in a row.
BTC is currently trading at $8,274 and still, there's no sign of recovery after the fall on September 24.
We could see further drops in price if the bulls are not able to reverse the damage seen at the end of last month.
What’s more, October has had a poor start for traders who looked to capture Tuesday’s rebound to $8,511. Prices quickly fell back to below $8,300 at about 02:00 UTC.
This 3rd month of losses has paved the way for further declines in price. There is a similar monthly pattern to what we say between February 2018 and October 2018. Prices seem to find a solid support base at about $7,780 with overall interest sliding. This can be seen by the limited price range and lower highs of the monthly candles over the last quarter.
There is a hope that sellers could tire by the end of the month since the total volume has seen a decline period-to-period. We will see if that theory comes to fruition in the next few days because historical data suggests that volatility tends to increase mid-month.
There is no counter-narrative to be seen in the weekly chart when we compare to the monthly chart’s bearish view. Momentum has reached its maximum under the RSI’s neutral 50 zone. This is a measurement of sellers and buyers over a specific period of a particular asset.
Further to this, the AO (awesome oscillator), which is another measure of momentum and market cycles, shows Bitcoin’s slow but steady decline as prices struggle to return to above $9,000.
Looking at the limited price range alongside the weekly trajectory, the bears seem ready to push prices towards the 50-period moving average at $6,700.
If prices were to rise above $9,400 and subsequently $9,800, this would help to reverse the recent developments in the market and build up confidence again for investors.