Bitcoin (BTC) has a bullish potential in October - Research

Delphi Digital published the Bitcoin trends research that can help predict the price movements one the largest cryptocurrency in October.

Delphi Digital is a research company specializing in digital assets that offers an institutional-grade analysis on digital assets and decentralized networks. In its latest report, the company identified some bullish and bearish trends to be taken into consideration for the mid-term price predictions.

A recovery above $8,000 is a good signal and a big relief to the long-term bitcoin bulls, as it may be regarded at a buying opportunity, the company says.

"[Those] with long-term conviction in this asset class should welcome this pullback with open arms as it presents an opportunity to buy or add to existing positions at lower prices.”

The experts noticed that Bitcoin price tends to do better after a sharp collapse of 10% or more in 24 hours time-frame. The average returns 7 days, 14 days and 30 days are all better after a strong sell-off than on all other days. This findings support the strategy of buying the dips.

On the opposite side, there is a potential for an extended downside move as BTC/USD slipped below SMA200 (Simple Moving Average)  for the first time since March 2018. The researchers point out that these developments are usually followed by downside momentum with negative returns within the time span of 140 to 30 days. 

"Bitcoin has rebounded slightly off its intra-week lows, but we remain a bit cautious in the short term given this week’s technical breakdown," the report says.

At the time of writing, BTC/USD is changing hands at $8,210, down 2% in recent 24 hours and about 1% since the beginning of the day.