Bitcoin has kicked off October strong, aligning with the expectations of many enthusiasts. The key question now is: Will it reach a new all-time high before this month concludes? In this discussion, we consulted three of the top AI chatbots for their insights on the matter.

What Could Drive Such a Surge?

ChatGPT has pointed out that there is a reasonable chance of this happening, emphasizing that October—often nicknamed “Uptober” by the crypto community—is typically a strong month for Bitcoin.

“This seasonal trend, along with institutional investments (spot ETFs and long-term holders accumulating), sets a positive scene,” it stated.

The bot further noted that Bitcoin might have increased opportunities to achieve a new high, particularly if macroeconomic uncertainties in the United States, partly due to the government shutdown, continue. Analysts indicate that these ongoing issues could lead to investor panic, pushing them towards alternative assets like Bitcoin.

Grok, the AI on the social platform X, forecasts a 65-75% chance for this scenario based on historical analysis, technical indicators, and overall sentiment. It mentioned the likelihood of the Federal Reserve lowering interest rates by the end of the month, potentially raising interest in riskier investments and favorably impacting Bitcoin.

The FOMC meeting is set for October 29, and Polymarket estimates a 90% chance of a rate cut.

Perplexity suggests Bitcoin could range between $115,000 and $127,500 this month. However, it cautions that after any potential peak, a slight decline might follow in November and December.

Watch Out for These Pitfalls

Despite the excitement across social networks and optimistic forecasts from the AI chatbots referenced, investors should stay vigilant against more short-term corrections.

Bitcoin’s Relative Strength Index (RSI) recently exceeded 80 for the first time since mid-July, usually indicating the asset is overbought and may need a pullback. Conversely, readings below 30 are viewed as bullish territory.

Today (October 2), the Bitcoin Fear and Greed Index, which assesses many factors including trading activity and social sentiment, is in the “greed” zone at a score of 64, the highest it has been in seven weeks.

Although this could be seen as a positive indicator, some traders use it as a contrarian signal, adhering to Warren Buffett’s advice to be cautious when greed prevails and to seize opportunities when fear is predominant.