Bitcoin is currently showing bullish price movements that have generated optimism among cryptocurrency investors. The cryptocurrency recently exceeded the psychological $60,000 price level after three weeks of being a significant resistance point. Since surpassing $60,000, Bitcoin has maintained its upward trajectory and has gained 9.8% over the past seven days. Notably, the crypto is up by 20% from its lowest monthly point of $52,827.
This price surge arrives at a pivotal moment for Bitcoin, as September has consistently been crucial for the cryptocurrency’s price dynamics in the last quarter of the year. Historical data from Coinglass indicates that a positive close in September typically leads to strong performance in October, November, and December.
Historical Trends And The Significance Of A Positive September
A ‘positive’ September means Bitcoin concludes the month with gains or an overall rise from its starting price at the beginning of the month. Over its 12-year existence, Bitcoin has experienced eight ‘negative’ Septembers, where prices ended lower than they began. Conversely, there have only been three positive Septembers. However, these instances of a positive close have consistently resulted in significant rallies in the following months of October, November, and December.
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The first notable positive September occurred in 2015, with Bitcoin closing the month up by a modest 2.35%. This seemingly minor achievement paved the way for substantial gains in the following months, with Bitcoin rising 33.49% in October, 19.27% in November, and 13.83% in December. The most recent positive September took place in 2023, leading to a considerable bull run and positive monthly candles for the next six months, ultimately resulting in Bitcoin reaching a new all-time high in March 2024.
What To Anticipate From The Bitcoin Price
Currently, Bitcoin is trading at $63,640. The cryptocurrency has seen a surge in investments over the past few days, leading to capital flowing into other digital assets. The overall crypto market cap now stands at $2.21 billion, reflecting an 8.33% increase in one week.
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Importantly, the rise in cryptocurrency values is largely attributed to the United States Federal Reserve’s decision to lower its benchmark interest rate by 50 basis points. This action, marking the first rate cut in over a year, is perceived as positive for riskier investments like Bitcoin.
Looking ahead, additional rate cuts are anticipated in the coming months. According to the CME Group’s FedWatch Tool, investors are currently factoring in a 100% probability of another rate cut at the next Federal Reserve meeting scheduled for November 7. This forecast is encouraging for Bitcoin and the wider crypto market, as ongoing rate cuts could foster sustained upward price momentum. Cryptocurrency investors can anticipate several months of favorable price action for Bitcoin, with the next objectives being breakouts above $65,000, $67,000, and $70,000.
Featured image created with Dall.E, chart from Tradingview.com
