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Uptober Rally: Bitcoin Hits 7-Week High, Institutions Propel Ether Higher

By Jordan Finneseth

Jordan Finneseth is an experienced crypto journalist, having previously worked for notable publications, including Cointelegraph, and currently serving as the Crypto Editor for Kitco News. He holds a Master of Science in Clinical/Counseling Psychology from Cal State San Bernardino and a pair of Bachelor's degrees in Psychology and Environmental Health Science, but began to focus his attention on the cryptocurrency space in early 2017 after notici...

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Crypto markets sprang back to life in the lead-up to October, following a two-week pullback that had many saying, “I told you so,” regarding the possibility of a “Red September.”

After bottoming out near $108,600 last Friday, Bitcoin (BTC) bulls went to work to ensure King Crypto finished the month in the red, ultimately sparking a late-September rally that resulted in a monthly gain of 6.34%.

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BTC/USD 1-day chart. Source: TradingView

Building on the momentum from their end-of-the-month push, bulls gained steam on Wednesday, pushing BTC to a daily high of $118,722 – a strong start to the month that has historically been the best-performing month for the cryptocurrency market, earning it the moniker “Uptober.”

Early trading on Thursday suggests that FOMO is starting to build, with BTC spiking to $119,542, a seven-week high, and just 4% below its all-time high of $124,542 set on August 14.

A survey of Crypto X shows that bullish fever is in full swing, prompting many analysts to warn that a short-term pullback is likely before the uptrend continues.

“$BTC Solid breakout and nice close at the start of October,” said market analyst Daan Crypto Trades. “Ideally, wouldn't want to see this go back into the channel and below $112K in October to keep the bullish momentum alive.”

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BTC/USD 1-day chart. Source: X

“Since it's the start of the month & quarter, I am not ruling out some potential choppiness where the breakout gets retested or something,” he added. “Overall bullish for October & Q4, although the first week is always a bit all over the place, so also want to stay level headed in the short term…”

And according to market analyst Crypto Zee, the current momentum and technical setup could propel Bitcoin to a new all-time high of $130,000 in the near future.

At the time of writing, Bitcoin is trading at $118,650, representing a 6.1% increase over the past 7 days.

Institutions provide a boost to Ether

It’s not just Bitcoin that is experiencing a bullish upswing; Ethereum (ETH) has also seen a strong recovery from its recent low of $3,827, hitting $4,004 in early trading on Thursday.

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ETH/USD 1-week chart. Source: TradingView

Analysts were quick to note the formation of a bull flag pattern on the weekly chart, which prompted market analyst Galaxy to declare Ether “looks like it wants more.”

With its price trending higher and more than $729 million in net inflows into U.S.-listed spot Ether ETFs over the past three days, it is now widely anticipated that ETH will hit five figures before the end of this bull market cycle.

Institutional and corporate players are playing a significant role in this rally, with data from StrategicETHreserve.xyz showing that the collective holdings of strategic reserves and ETFs have increased by 250% since April 1, reaching 12.165 million ETH as of Wednesday, worth nearly $47.7 billion.

This activity is reflected on the Ether chart, with market analyst Cas Abbé highlighting that hindsight shows the April low was the “Spring” phase of the Wyckoff accumulation pattern.

The second-ranked crypto by market cap is now in the “sign of strength” (SOS) zone of the Wyckoff pattern, which comes just before the breakout phase. Cas Abbé predicts an 80-100% rally over the next 6-8 weeks.

At the time of writing, Ether is trading at $4,390, representing an 8.94% increase over the past 7 days.

Jordan Finneseth is an experienced crypto journalist, having previously worked for notable publications, including Cointelegraph, and currently serving as the Crypto Editor for Kitco News. He holds a Master of Science in Clinical/Counseling Psychology from Cal State San Bernardino and a pair of Bachelor's degrees in Psychology and Environmental Health Science, but began to focus his attention on the cryptocurrency space in early 2017 after noticing the rapid growth of this emerging market. Since that time, Jordan has expanded his knowledge to become familiar with all things crypto and enjoys using the lessons learned to help spread awareness about blockchain technology and cryptocurrencies to the general public in an easy-to-understand manner.

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