Bitcoin is showing early signs of a potential October bottom as improving on-chain demand and the approaching U.S. midterm elections support expectations for a recovery. According to NS3.AI, large holders have lifted their combined holdings to almost 3 million BTC, while apparent demand has recovered but remains below zero.

Elevated Treasury yields and slowing spot Bitcoin ETF inflows remain headwinds for the market. Crypto trader KillaXBT said he favors a rally before the Nov. 3 elections, followed by a correction that forms a higher low. He also said Bitcoin could recover toward $95,000 after the elections if it declines before then.