Bitcoin, the world’s leading cryptocurrency, has been on a steady upward trajectory, maintaining strong support around the $60,000 level and recently hitting a daily high of $60,363. This growth is fueled by positive forecasts from market analysts.
ETF Bitcoin
Historically, Bitcoin tends to experience significant price rallies following its halving events. In previous cycles, Bitcoin has typically broken out of its consolidation phase between 150 to 160 days post-halving, which signals the possibility of a major price rally by the end of September 2024.
While September has historically been a challenging month for Bitcoin, with an average return of -4.48%, October has generally seen stronger performance, boasting an average return of +22.9%. Given this historical trend, many experts predict that Bitcoin could see substantial price gains in October, driving positive momentum across the market.
TechDev, a well-known cryptocurrency analyst, anticipates that Bitcoin may follow a pattern similar to the 2016 cycle, where it surged from $300 to $20,000. According to TechDev, Bitcoin has completed its ABC correction pattern, marking the end of the recent downtrend. The RSI (Relative Strength Index) for Bitcoin also indicates a recovery, suggesting that Bitcoin is building positive momentum for future price growth.
TechDev also pointed out that Bitcoin tends to rise after global liquidity increases, especially following halving events. Based on past cycles, Bitcoin could experience considerable growth in the coming months, potentially reaching as high as $92,000.
October is expected to be a pivotal month for Bitcoin's price surge, with investors closely watching the situation. The recent dip is seen as a buying opportunity before prices climb again. This positive outlook could boost investor confidence, leading to increased Bitcoin purchases and pushing the price closer to the $92,000 target over the next few months.
Bitcoin
At the same time, Bitcoin investors are paying attention to the upcoming Federal Reserve interest rate decision, which is expected to be announced on Wednesday. Market analysts predict a rate cut, which Fed Chair Jerome Powell has alluded to in recent speeches.
Should the Federal Reserve announce a more substantial rate cut than expected, Bitcoin’s price could rise sharply. Further rate cuts in 2024 and 2025 might also bolster investor confidence, encouraging more Bitcoin purchases and driving the price higher.
The market is currently anticipating a 50 basis point rate cut from the Fed, which could benefit Bitcoin’s price. Investors are also waiting for additional information from the Fed’s updated interest rate projections, along with Powell’s remarks after the announcement, which may provide more clarity on future monetary policy changes.
As of now, Bitcoin is trading at $59,994, down 0.58% after failing to break through the key resistance level of $60,583. The $58,325 level, supported by the 50-day EMA, is an important support zone, helping to prevent further short-term declines.
The current RSI stands at 60.43, indicating neutral to bullish momentum for Bitcoin. However, there are signs that Bitcoin could be overbought, potentially leading to a price correction. If Bitcoin fails to break above the $60,583 resistance, its price may drop to test the $58,855 support level. A break below this support could lead to a further decline toward $57,645.
On the flip side, if Bitcoin surpasses the $60,583 resistance level, the price could rise to the next target at $62,100, reinforcing the bullish outlook. For those considering an entry point, buying between $58,000 and $58,250 might present a solid opportunity. However, if the price stays below $60,000, selling could be a more cautious strategy.
A break above the $60,000 mark would likely shift investor sentiment and pave the way for new price growth, further reinforcing the bullish trend.
