Historically, October and November have been the best months for Bitcoin, will the cryptocurrency give in to seasonality and reverse the bearish trend?
Chain data of Santiment, a blockchain analytics company, show that 34.723 Bitcoin left cryptocurrency exchanges on September 30, marking the highest point in the past three months and the fourth highest Bitcoin move of 2022.
Santiment indicates that this movement could mark a turning point for investor sentiment, being the starting shot for the start of a bullish period looking ahead to the fourth quarter.
The last time such a high number of Bitcoin left exchanges was on June 17th and over the following weeks the cryptocurrency began a small bullish rally, with a 22% rise.
In another recent analysis, analytics firm CryptoQuant notes that Exchange reserves have decreased by more than 600.000 BTC over the past few days. This is the highest number in months, which could indicate that the Demand is growing again, overcoming the price decline of recent months.
Even though Bitcoin outflow from exchanges remains positive, a lower supply on exchanges also implies a less selling pressure by investors, which could also be an indicator of a change in trend in the price of Bitcoin.
The fourth quarter is usually good for Bitcoin
Bitcoin has not been able to maintain the support level of $20.000 in September and has closed the month below $19.500. Bitcoin has closed the month with losses of 3,16% and starts the month with the same trend, marking losses of 1,64% so far this month.
However, the fourth quarter and especially October have historically been good for Bitcoin, with increases of up to 103,9%. These have traditionally been the best months for BTC, with an average growth of 24% in October and 58% in November.
Although during the start of October, Bitcoin has maintained negative traction, the BTC output of exchanges and the low level of reserves, could indicate a change in trend that could boost the price of the cryptocurrency, following the traditional “seasonality”.
El Salvador continues to defend Bitcoin
On the other hand, in an open letter written in Bitcoin Magazine, Nayib Bukele, president of El Salvador, has come out in defense of his work. In it, he explains that, despite what the press says mainstream, the country is not in economic trouble because of the Bitcoin Law.
Bukele believes that the main detractors of the Bitcoin Law are the world's government elites and the "people who work for them." He explains that news of losses 50 million during the Bitcoin bear market are lies.
Despite what the media says, El Salvador has increased its GDP by 10,3% during 2021, tourism revenues grew by 52%, employment rose by 7%, new businesses increased by 12%, exports by 17%, energy generation by 19% and domestic income by 37%. All without raising any taxes.
Bukele bluntly states that “if El Salvador is successful, many countries will follow.”
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