Leading cryptocurrency Bitcoin (BTC) experienced sharp declines in October, a month historically known for its bullish trends.
At this point, Bitcoin has continued its decline despite its traditional upward trend in October and is still searching for direction.
Analyst James Van Straten noted that Bitcoin continues to struggle in October, one of the strongest months in history for the cryptocurrency.
The analyst explained that Bitcoin is currently moving sideways between its 200-day and 365-day simple moving averages (SMA), emphasizing that the $103,000 support level is critical.
Stating that the 200-day SMA has largely served as support for Bitcoin since the beginning of the 2023 cycle, the analyst added that when this level cannot be maintained, the 365-day SMA acts as secondary support.
The analyst further elaborated that the 365-day SMA is situated at $100,367, indicating that Bitcoin is currently trading within a range bounded by the 200 and 365-day SMAs.
“While investors generally anticipate a price increase in October, market sentiment has so far failed to meet those expectations.
BTC has consolidated between the 200-day SMA, which is at $107,846, and the 365-day SMA, which is at $100,367.
This sideways trend marks the fourth time this cycle that Bitcoin's price has been confined between these two averages, and such periods could extend for months.
The analyst also highlighted key levels for investors to monitor for Bitcoin, including $103,509 (representing the 2025 investor cost basis), $100,000 (a significant psychological level), and $112,100 (the short-term cost basis).
Concluding his analysis, the analyst pointed out that the 200-day SMA is frequently utilized as a demarcation line between bull and bear markets, stating, “Bitcoin breaking above the 200-day line is the key to a short-term recovery and a signal of a trend change. However, if it fails to break above this level, a prolonged sideways movement is likely.”