Crypto Drought Causes Uptober Mentions To Plunge On Social Media

Bullish sentiment surrounding cryptocurrency for October, often referred to as Uptober on social media, has been diminishing as markets continue to decline. Onchain analytics firm Santiment observed a significant drop in mentions of Uptober since the month&39s onset, according to an X post on October 4th.

They noted that traders have grown pessimistic about the notion of this month being an automatic money printer for crypto. Instead, social media is filled with references to Selltober and Octobear. However, Santiment founder Maksim Balashevich remarked that the current lack of enthusiasm may create opportunities for a short-term rebound.

Chance For Recovery

Maksim stated that as Uptober excitement fades with the market downturn, it does create a chance for recovery. Whether the larger downward trend has concluded remains uncertain. Veteran crypto trader Ash Crypto informed his 1.1 million X followers on October 3rd that BTC might dip further, leading people to lose faith in Uptober, before adding that once bears get excited and start predicting $40k to $45k, BTC will surge.

In a note to investors on October 4th, analysts at 10x Research pointed out that many crypto bulls had been taken by surprise since March, anticipating a continued bull run. They indicated that technical indicators showed the rally was overextended, noting that it appears that sell-offs by early adopters and substantial token unlocks have been pushing prices down, even with strong inflows via stablecoins, Bitcoin Spot ETFs, and increased futures leverage.

A Repetitive Pattern

Historically, October has been favorable for Bitcoin, with positive price movements observed in nine out of the last eleven years, which contributed to its nickname. The past five consecutive Octobers recorded gains between 5.5% and 40%, including during bear markets.

However, price gains typically emerge around mid-October based on past cycles. In the first half of October 2023, BTC experienced a decline of about 7%, dropping to $28,500 on October 2nd before falling further to $26,650 by October 13th. The asset then surged nearly 30%, closing the month at $34,500. As of now, Bitcoin has lost approximately 4.7% this month.