For the first time in nearly two months, Bitcoin (BTC) surpassed the $65,000 mark, marking a significant recovery after two notable drops in August and September. During these declines, Bitcoin suffered a sharp 20% decline on two separate occasions, specifically on August 5th and September 6th.
However, as October approaches – a month often associated with a bullish resurgence in Bitcoin – market forecasts are increasingly optimistic, suggesting that cryptocurrency could be gearing up for another major uptrend.
Could Bitcoin reach $79,000 in October?
On Thursday, Bitcoin recorded a 3% increase in a 24-hour period, reaching a price of $65,500. This upward movement has sparked discussions among analysts about whether this signals the beginning of a parabolic bull run.
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Crypto Investor Scott Melker express this sentiment, emphasizing that Bitcoin is currently trying to establish its first higher high since peaking at $74,000 in March of this year.
Melker noted that closing above $65,000 would confirm a new upward trend, transitioning from the $50,000 lows seen in August. This pattern – a low, a high, a higher low and a higher high – suggests a bull market structure replacing previous downtrends.
Historically, October has been a strong month for Bitcoin, with analysts like Lark Davis. pointing that the average return this month is approximately 22.90%.
If Bitcoin were to experience a similar surge this year, it could potentially rise to around $79,000, surpassing its previous all-time high and breaking through key resistance levels. Such a move would set the stage for a powerful recovery in November, according to Davis’ analysis.
Record performance in September
In further analysis, Rekt Capital provided insights into Bitcoin’s recent performance. He noted that September, often viewed negatively, turned out to be the best September for registered Bitcoin, with an increase of 9%.
Rekt also highlighted historical patterns related to Bitcoin halving cycles, indicating that Bitcoin typically exits its reaccumulation range approximately 154 to 163 days after halving.
Currently, Bitcoin is 159 days past its last halving, which took place in April this year. Based on previous cycles, Rekt believe This momentum suggests that a breakout may be imminent, reinforcing the idea that Bitcoin is well positioned for significant gains in the near future.
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The current resurgence can be attributed to the conciliatory stance of the US Federal Reserve (Fed) and the recent 0.50% basis point (bps) interest rate reduction on September 18, which was seen as a notable bullish catalyst not only for BTC but also for the broader market, which has tracked Bitcoin’s performance positively over the past few days.
Furthermore, last week we saw a resumption of flows in the Bitcoin ETF market, after steady outflows throughout August and early September. For example, US spot Bitcoin ETFs saw a total net inflow of $106 million on Wednesday, continuing their net inflows for 5 consecutive days. BlackRock’s IBIT ETF had an inflow of $184 million.
Overall, there appears to be a combination of bullish catalysts for the market’s largest cryptocurrency to continue its rally, with massive gains expected in the last half of the year and into early 2025.
Featured image of DALL-E, chart from TradingView.com