For the first time in nearly two months, Bitcoin (BTC) has surpassed the $65,000 mark, marking a significant recovery following two notable downturns in August and September. During these crashes, Bitcoin experienced a steep decline of 20% on two separate occasions, specifically on August 5 and September 6.
However, as October approaches—a month often associated with a bullish resurgence for Bitcoin—market predictions are increasingly optimistic, suggesting that the cryptocurrency might be gearing up for another major uptrend.
Could Bitcoin Reach $79,000 In October?
On Thursday, Bitcoin recorded a 3% increase within a 24-hour period, reaching a price of $65,500. This upward movement has sparked discussions among analysts about whether this signals the start of a parabolic bull run.
Crypto investor Scott Melker expressed this sentiment, emphasizing that Bitcoin is currently attempting 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 lows of $50,000 observed in August. This pattern—a low, high, higher low, and higher high—suggests a bullish market structure replacing the previous bearish trends.
Historically, October has been a strong month for Bitcoin, with analysts like Lark Davis pointing out that the average return during this month is approximately 22.90%.
If Bitcoin were to experience a similar increase this year, it could potentially rise to around $79,000, surpassing its previous all-time high and overcoming key resistance levels. Such a move would set the stage for a powerful rally into November according to Davis’ analysis.
Record-Breaking Performance In September
In a 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 Bitcoin on record, with a 9% increase.
Rekt also highlighted historical patterns related to Bitcoin’s Halving cycles, indicating that Bitcoin typically breaks out from its re-accumulation range approximately 154 to 163 days post-Halving.
Currently, Bitcoin is 159 days past its last Halving that took place in April of this year. Based on previous cycles, Rekt believes that this timing suggests that a breakout could be imminent, reinforcing the idea that Bitcoin is well-positioned for significant gains in the near future.
The current resurgence can be attributed to the US Federal Reserve’s (Fed’s) dovish stance and recent 0.50% basis point (bps) interest rate cut on September 18, which was seen as a notable bullish catalyst not only for BTC but also for the broader market, which has followed Bitcoin’s performance to the upside in recent days.
In addition, last week saw a resumption of inflows into the Bitcoin ETF market, following steady outflows throughout August and early September. For instance, US spot Bitcoin ETFs had 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 seems to be a combination of bullish catalysts in place for the market’s largest cryptocurrency to continue its recovery, with massive gains expected in the last half of the year and early 2025.
Featured image from DALL-E, chart from TradingView.com