Why Bitcoin’s Big October Close is Good News For Institutions

By Martin Young
November 2, 2020 Updated November 2, 2020
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Bitcoin bullish cycle

Bitcoin had one of its best performing months this year and was just shy of its highest monthly close ever. This is important for a number of reasons, primarily from an institutional investment standpoint.

Over the weekend, Bitcoin prices topped $14,000 for a brief moment which marks the asset’s highest level since January 2018.  The move did not last long and was over within a few minutes but a long wick did touch an almost three-year high of $14,100 according to Tradingview.com charts.

Bitcoin price
Chart – tradingview.com

Since then, prices have pulled back to the $13,700 level during the Monday morning Asia trading session.

The move has given Bitcoin a huge monthly close for October, which is just a few dollars away from its highest ever close that came in December 2017.

Bullish For Institutions

Investor and chart expert Peter Brandt observed this big green candle stating that it is important because month-end asset valuation is how institutional participants appraise their holdings and investments.

With this in mind, many of them will be looking towards Bitcoin now as it has been one of the best performing assets in a year that has been one of the worst for global economies.

Since the beginning of 2020, Bitcoin has gained 90% to current levels. By comparison, gold which has also had a solid year has only managed a gain of 24% over the same period.

Analyst and creator of the popular stock-to-flow model, ‘PlanB’, commented on historical performance;

“Bitcoin is the best performing asset, this year, last 5 years and last 10 years. Even risk-adjusted bitcoin outperforms all other assets, year after year.”

Average monthly returns for BTC in October are 13% according to Unfolded, the month just gone saw a 28% return, which is fourth best October in history.

November returns are usually much better so the bullish momentum may well continue for another month.

Current Bitcoin Price Outlook

Analyst, Josh Rager, commented that Bitcoin just needs to break above $13,880 for an all-time high close in the coming months. The recent move was just a spike, likely caused by one or two whales since it happened within minutes.

The asset has retreated a couple of percent since its weekend peak and could fall further to support at around $13,600 before any more upward moment is found. Now that the 2019 peak has been topped, the next target for the bulls is levels not seen since early 2018 which would be anywhere from $15k to $17k.

Martin has been writing on cyber security and infotech for two decades. He has previous forex trading experience and has been covering the blockchain and crypto industry since 2017.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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