After nearly two months, Bitcoin (BTC) has once again crossed the $65,000 threshold, indicating a notable recovery from the significant drops that occurred in August and September. During these downturns, Bitcoin faced a steep 20% decrease on two occasions: August 5 and September 6.
With October on the horizon—a month typically linked to a bullish recovery for Bitcoin—market forecasts are becoming more optimistic, implying that the cryptocurrency may be poised for another substantial upward movement.
Could Bitcoin Approach $79,000 This October?
On Thursday, Bitcoin saw a 3% increase within a 24-hour span, reaching a price of $65,500. This upward trend has ignited conversations among analysts regarding whether this marks the beginning of a parabolic bull market.
Related Reading
Crypto investor Scott Melker shared this view, highlighting that Bitcoin is currently making an effort to set its first higher high since it reached $74,000 in March of this year.
Melker indicated that a close above $65,000 would validate a new upward trend, moving away from the lows of $50,000 experienced in August. This sequence—a low, high, higher low, and higher high—suggests a bullish market structure is replacing the former bearish trends.
October historically has been a strong month for Bitcoin, with analysts like Lark Davis noting that the average return for this month is around 22.90%.
Should Bitcoin experience a similar rise this year, it might reach approximately $79,000, exceeding its previous all-time high and overcoming essential resistance levels. Such a movement would set the foundation for a strong rally as November approaches, according to Davis’ analysis.
Unprecedented Performance in September
In further analysis, Rekt Capital shared insights on Bitcoin’s recent performance, noting that September, which is often seen unfavorably, turned out to be the best September for Bitcoin on record, showing a 9% growth.
Rekt also pointed out historical trends linked to Bitcoin’s Halving cycles, indicating that Bitcoin usually breaks out of its re-accumulation phase around 154 to 163 days after Halving.
As of now, Bitcoin is 159 days post its last Halving that occurred in April. Based on previous trends, Rekt believes that this timing indicates a potential breakout could be close at hand, bolstering the notion that Bitcoin is well-positioned for substantial gains shortly.
Related Reading
The ongoing resurgence can be linked to the US Federal Reserve’s (Fed’s) softer stance and the recent 0.50% basis point (bps) interest rate reduction on September 18, which was perceived as a significant bullish driver not just for BTC but also for the wider market, which has mirrored Bitcoin’s recent success.
Moreover, last week marked a resumption of inflows into the Bitcoin ETF sector, having seen consistent outflows during August and early September. For example, US spot Bitcoin ETFs recorded total net inflows of $106 million on Wednesday, maintaining a streak of net inflows for five consecutive days. BlackRock’s IBIT ETF also saw an inflow of $184 million.
Overall, there appears to be a convergence of bullish factors in play for the market’s leading cryptocurrency to persist in its recovery, with significant gains anticipated in the latter half of this year and early 2025.
Featured image from DALL-E, chart from TradingView.com
