Bitcoin is currently exhibiting bullish price action that has sparked optimism among crypto investors. The cryptocurrency recently broke above the psychological $60,000 price barrier after three weeks of acting as a dreaded resistance level. Since breaking past $60,000, Bitcoin has continued the run-up and has increased by 9.8% in the past seven days. Interestingly, the crypto is up by 20% from its lowest point of $52,827 this month.
This price increase comes at a critical point for Bitcoin, as September has always been a make-or-break month for Bitcoin’s price performance in the fourth quarter of the year. According to price data from Coinglass, a green close in September has been a precursor to strong performance in October, November, and December.
Historical Trends And The Importance Of A Green September
A ‘green’ September refers to Bitcoin closing the month in profit or with an overall price increase from its opening on the first day of the month. Over the span of Bitcoin’s 12-year history, the cryptocurrency has seen eight ‘red’ Septembers, where prices closed lower than they started the month. In contrast, only three Septembers have ended in green. However, these rare instances of a green close have consistently led to strong rallies in the subsequent months of October, November, and December.
The first instance of a green September came in 2015 when Bitcoin managed to close with a modest 2.35% gain. This seemingly small victory set the stage for gains in the months that followed, with Bitcoin surging 33.49% in October, 19.27% in November, and 13.83% in December. The latest green September occurred not too long ago in 2023. This led to a significant bull run and green monthly candles for the subsequent six months, culminating in Bitcoin reaching a new all-time high in March 2024.
What To Expect From The Bitcoin Price
At the time of writing, Bitcoin is trading at $63,640. Bitcoin has witnessed an influx of investments in the past few days, which in turn has flowed into other cryptocurrencies. The entire crypto market cap now stands at $2.21 billion, which is an 8.33% increase in seven days.
Notably, the increase in cryptocurrency prices is mostly due to the United States Federal Reserve’s decision to cut its benchmark interest rate by 50 basis points. The move, which was the first rate cut in over a year, is deemed to be more favorable for risky assets like Bitcoin.
Looking ahead, further rate cuts are expected in the coming months. According to the CME Group’s FedWatch Tool, investors are currently on a 100% possibility of another rate cut in the next Fed meeting held on November 7. This outlook bodes well for Bitcoin and the broader crypto market, as continued rate cuts could lead to sustained upward price momentum. Crypto investors can look forward to months of positive price action for Bitcoin, with the next targets being breakouts above $65,000, $67,000, and $70,000.
Featured image created with Dall.E, chart from Tradingview.com