Bitcoin, after going through a bloodbath last month, several analysts have reanalyzed its price action to see what this new month of September can bring for the Bitcoin market.
Among them, a renowned crypto analyst known as Mags on X recently shared an insightful perspective on the current Bitcoin market behavior in one of his latest posts.
Is Bitcoin Poised for a September Rally?
Mags highlighted that Bitcoin has been in a long consolidation phase since March and is now entering its seventh month.
He drew a parallel with a similar pattern seen last year, where Bitcoin also began its consolidation in March, only to have it start. recovering in September.
According to Mags, over the next seven months, Bitcoin experienced a 195% increase in price. So far, this historical pattern has raised the question of whether September will serve as a crucial month for Bitcoin.
#Bitcoin – Is September a slow month?
We all know that Bitcoin has been stuck in a long consolidation phase for the past few months.
This sideways PA started in March and is still ongoing. But what if I told you we saw a similar pattern last year?
At that time, consolidation… pic.twitter.com/8PJ8MMNEUR
-Mags (@thescalpingpro) September 2, 2024
Bitcoin is showing signs of a bearish trend, having fallen below the psychological $60,000 level. Over the past week, the cryptocurrency saw a decline of 9.9%.
However, there appears to be a slight recovery underway, with BTC currently trading at $58,411, up 0.3% over the past 24 hours.
BTC’s next expected moves
In response to Bitcoin’s recent price action, prominent crypto analyst Captain Faibik offered his panoramasuggesting that BTC is still moving within a bullish flag pattern. According to Faibik, there is a possibility that Bitcoin could test $54,000. support area again.
He stressed the importance of bulls defending this level as a rebound from $54,000 could potentially lead to a rally as high as $68,000 in September.
This scenario is in line with Mags’ theory that September could be a turning point for Bitcoin, reflecting last year’s price recovery.
To add to the discussion, another well-known analyst, Willy Woo, provided perceptions on the supply dynamics that affect Bitcoin’s price. Woo noted that the influx of BTC from sources such as Germany’s Mt. Gox and the US Department of Justice is gradually being “absorbed” into the market.
He also noted that paper BTC bets are decreasing, which he interprets as a positive sign. Overall, Woo suggested that market sentiment has shifted from bearish to neutral, indicating that the worst sell-off may be over.
Featured image created with DALL-E, Chart