As a seasoned analyst with over two decades of market observation under my belt, I have seen trends come and go, but the resurgence of Bitcoin in recent weeks has been nothing short of remarkable. Having witnessed the dot-com boom and bust, the 2008 financial crisis, and now the rapid growth of cryptocurrencies, I can confidently say that this industry is unlike any other.
For the first time in nearly two months, Bitcoin (BTC) has surpassed the $65,000 mark, marking a significant recovery following two notable downturns in August and September. During these crashes, Bitcoin experienced a steep decline of 20% on two separate occasions, specifically on August 5 and September 6.
As October nears – a time typically linked with a surge in Bitcoin’s value – there’s growing enthusiasm among market analysts, who believe that Bitcoin could be preparing for another significant upward movement.
Could Bitcoin Reach $79,000 In October?
Yesterday, Bitcoin experienced a 3% rise over a 24-hour span, hitting a value of $65,500. This climb has ignited debates among experts as to whether it might mark the beginning of an extended bullish trend, or what some call a parabolic surge.
Scott Melker, a crypto investor, pointed out that Bitcoin is aiming to reach a new peak above the $74,000 mark, which was hit in March of 2021, for the first time since then.
Melker pointed out that if the price surpasses $65,000, it would signal a fresh upward trajectory, moving on from the $50,000 lows seen in August. This sequence—a trough, peak, successively higher trough, and subsequent peak—indicates a bullish market setup, overturning the earlier bearish tendencies.
As a seasoned crypto investor, I’ve noticed a pattern: October tends to be a profitable month for Bitcoin investments. Experts like Lark Davis have pointed out that historically, the average return in October is around 22.90%.
Should Bitcoin exhibit a comparable growth in 2021, it might realistically surge towards approximately $79,000, surpassing its past peak and breaking through crucial resistance thresholds. This upward momentum, as suggested by Davis’ assessment, could pave the way for an impressive surge continuing into November.
Record-Breaking Performance In September
In additional examination, Rekt Capital offered observations about Bitcoin’s recent trends. He pointed out that September, typically seen in a negative light, surprisingly posted the highest growth ever for Bitcoin, amounting to a 9% rise.
Rekt also highlighted historical patterns related to Bitcoin’s Halving cycles, indicating that Bitcoin typically breaks out from its re-accumulation range approximately 154 to 163 days post-Halving.
At present, it’s been 159 days since Bitcoin underwent its last halving event, which occurred in April of this year. According to Rekt’s analysis based on past trends, this timeframe might indicate that a potential surge could be just around the corner, strengthening the notion that Bitcoin is poised for substantial growth in the coming weeks.
The surge we’re experiencing now can be linked back to the more accommodative policy stance taken by the U.S. Federal Reserve (Fed) and their decision to reduce interest rates by 0.50% on September 18. This move was viewed as a significant positive factor, or catalyst, not just for Bitcoin but also for the overall market. In fact, the market has been mirroring Bitcoin’s upward trend over the past few days.
As an analyst, I observed an interesting trend in the Bitcoin ETF market last week. After a series of outflows that stretched from August through early September, we witnessed a resurgence of investments. To illustrate, on Wednesday alone, US spot Bitcoin ETFs recorded a total net inflow of $106 million, marking the fifth consecutive day of such inflows. Moreover, BlackRock’s IBIT ETF saw an impressive influx of $184 million.
It appears that several positive factors are aligning themselves for the biggest cryptocurrency, suggesting it will likely keep growing and recover further. There’s a strong prediction of significant increases in the second part of this year and into early 2025.
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2024-09-26 22:16