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Bitcoin is currently showing bullish price action that has brought optimism to cryptocurrency investors. The digital currency recently surpassed the psychological barrier of $60,000 after three weeks of being a challenging resistance level. Since breaking above $60,000, Bitcoin has continued its upward trend and has increased by 9.8% in the last seven days. Interestingly, the crypto has risen by 20% from its lowest point of $52,827 earlier this month.
This price surge comes at a crucial time for Bitcoin, as September has historically been a determining month for the cryptocurrency’s performance in the fourth quarter of the year. According to data from Coinglass, a positive close in September has often led to strong performance in October, November, and December.
Historical Patterns And The Significance of a Positive September
A ‘positive’ September refers to Bitcoin ending the month with a profit or an overall increase in price from the beginning of the month. Throughout Bitcoin’s 12-year history, the cryptocurrency has seen eight ‘negative’ Septembers, where prices closed lower than the month’s opening. In contrast, only three Septembers have ended positively. However, these rare 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 positive September occurred in 2015 when Bitcoin closed with a modest gain of 2.35%. This seemingly small victory paved the way for gains in the subsequent months, with Bitcoin surging 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 significant bull run and positive monthly performance for the next six months, ultimately culminating in Bitcoin reaching a new all-time high in March 2024.
Forecast for Bitcoin’s Price Movement
Currently, Bitcoin is trading at $63,640. The digital currency has experienced an influx of investments in recent days, which has also positively impacted other cryptocurrencies. The total crypto market cap now stands at $2.21 trillion, marking an 8.33% increase in the past seven days.
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The recent surge in cryptocurrency prices is largely attributed to the decision by the United States Federal Reserve to cut its benchmark interest rate by 50 basis points. This move, the first rate cut in over a year, is seen as favorable for riskier 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 anticipating a 100% chance of another rate cut at the next Fed meeting on November 7. This outlook bodes well for Bitcoin and the broader crypto market, as continued rate cuts could sustain upward price momentum. Crypto investors can anticipate positive price movements for Bitcoin in the months ahead, with key targets being breakouts above $65,000, $67,000, and $70,000.
Featured image created with Dall.E, chart from Tradingview.com