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Bitcoin Forecast: October 2021

After starting the month of September on a positive note and achieving a high of nearly 53,000.00 on the 7th of September, BTC/USD has reversed lower.

When trading started for BTC/USD in September it had just experienced a rather poor last week of results in August. After achieving a high price of approximately 50550.00 on the 23rd of August, BTC/USD demonstrated a slight selloff and saw a low of nearly 46460.00 as the month ended. However, the first week of trading in September created another surge higher for Bitcoin and it hit a high of nearly 53000.00 on the 7th.

Unfortunately for bullish speculators, BTC/USD, along with its major counterparts, has largely run into headwinds since the end of the first week in September. As October prepares to start BTC/USD is traversing near important lows and is essentially testing value not seen since the first week of August, this while it was in the midst of a recovery from July lows which saw a depth of nearly 29100.00 on the 21st of July.

BTC/USD is currently slightly below the 43000.00 level with its typical fast moving market conditions dominating. Technically, BTC/USD has had a difficult time reestablishing higher resistance levels and has actually seen a steady decrease incrementally in the ratios since the 17th of September when Bitcoin was trading near the 49000.00 juncture. Nervous sentiment has certainly taken hold within the cryptocurrency market as its deals with rather loud whispers coming from the US regarding potential regulation. There has also been a crackdown on cryptocurrency trading in China which has likely created negative headwinds in the short term.

The last week of trading in BTC/USD has seen a steady test of the 40000.00 ratio, and on the 21st of September a value of nearly 39500.00 was briefly seen. Current support levels do look rather vulnerable and if the 39000.00 were to be seriously challenged this could set off another surge of bearish sentiment.

BTC/USD Outlook for October

Speculative price range for BTC/USD is 29000.00 to 53000.00.

If support ratios continue to be tested without solid signs of reversals higher occurring, it could fuel the notion that BTC/USD has another leg down it might suffer. Speculators who have the courage to sell BTC/USD may want to look at the 43000.00 level as interesting resistance. However, conservative traders, who favor trying to capture momentum, may actually want to wait for the 42000.00 support level to falter and then ignite short positions which aim for lower depths. If the 41000.00 to 40000.00 ratios begin to see a real challenge early August values could be targeted. Traders should take a look at three-month charts to consider potential direction downward.

Speculators are warned that BTC/USD remains highly volatile. The careful use of leverage cannot be overstated. Bitcoin has the capability to move in increments of a thousand USD quickly which can wipe out a trading account if stop loss protection has not been adequately used. Sellers of BTC/USD should be braced for the chance reversals can occur too, so quick hitting trades which use take profit orders are encouraged. If BTC/USD does fall below the 39000.00 mark and sees sustained trading below this depth, it could set off another wave of selling which makes support near the 38000.00 level look possibly vulnerable too. A key psychological mark short term for BTC/USD is obviously the 40000.00 ratio, if the price falls beneath this juncture and is sustained it may be a strong bearish signal.

Traders who believe reversals higher will be exhibited cannot be blamed. However, in the prevailing bearish trend which is dominating for the moment, speculators who are buyers are reminded to consider using quick hitting take profits. Until BTC/USD passes the 45000.00 level and sustains this value, bearish speculative forces may continue to rule the near term.

BTC/USD October 2021 Monthly

Robert Petrucci
About Robert Petrucci
Robert Petrucci has worked in the Forex, commodity, and financial profession since 1993. Important aspects of his work involve risk analysis and advisory services. As an advisor in a Family Office he maintains a conservative approach for wealth management and investments. Robert also works in private finance with investors and companies delivering financial and management services.

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