Bitcoin (BTC) trades above $114,000 on Wednesday, rebounding from key support levels seen the previous day. The largest cryptocurrency by market capitalization closed September with a 5.16% gain, bringing Q3 returns to 6.31%. Institutional demand continues to strengthen this week, marking a second consecutive day of inflows.
Bitcoin ‘Uptober’ optimism
BTC ended September above $114,000, with Q3 delivering a modest 6.31% gain, according to Coinglass data. Historical trends for October are bullish, with the cryptocurrency averaging a monthly return of 20.23%, earning the market nickname ‘Uptober.’
The outlook is further supported by the fourth quarter historically being the strongest for BTC, averaging gains of 78.88%, potentially driving the cryptocurrency to new highs by year-end.
Institutional demand continues to rise
The ongoing recovery is backed by institutional inflows. SoSoValue data shows Bitcoin spot ETFs recorded a second consecutive day of inflow, totaling $429.96 million on Tuesday. Continued inflows could further boost BTC’s price.
Altcoin ETFs may strengthen bullish sentiment
Several spot altcoin ETFs are expected to launch in October. Recent approval by the US Securities and Exchange Commission (SEC) of generic listing standards may accelerate ETF approvals. A report by K33 Research notes that ETF launches could reignite bullish demand across cryptocurrencies. Vanguard is reportedly exploring crypto ETFs for its brokerage clients, marking a significant development after years of skepticism.
However, uncertainties remain. A partial US government shutdown may impact liquidity, delay economic data, and slow ETF approvals, while banking holidays across major Asian markets could further soften liquidity in the near term.
BTC bulls eye $116,000
BTC started the week on a positive note, rallying nearly 2% on Monday and closing above the 50-day exponential moving average (EMA) at $113,403. On Tuesday, BTC found support around the 50-day EMA, and on Wednesday trades slightly higher at approximately $114,300.
If the 50-day EMA holds, BTC could extend its recovery toward daily resistance at $116,000. The daily Relative Strength Index (RSI) at 53 signals growing bullish momentum, while the Moving Average Convergence Divergence (MACD) shows a bullish crossover, suggesting a potential upward trend.
If BTC fails to maintain support at the 50-day EMA, a decline toward daily support at $107,245 could follow.
