Bitcoin (BTC), the largest cryptocurrency by market capitalization, has spearheaded the market recovery, surging to the $63,000 mark. This remarkable performance has resulted in an 8% weekly increase, marking one of Bitcoin’s best September performances since its inception.
Bitcoin Registers Sixth Green Daily Candle
During the first week of the month, Bitcoin struggled to maintain its price above the $55,000 mark, plummeting to the $52,000 support zone and raising investor concerns. The broader cryptocurrency market mirrored BTC’s decline, dropping 12% to a market capitalization of $1.81 trillion earlier this month.
However, the market has since experienced a significant boost, largely driven by the US Federal Reserve’s (Fed) rate cut. Following the Fed’s announcement, the sector recovered by 5%, continuing its upward trend throughout the weekend. Positive market sentiment led to crypto investment products ending the week with $321 million in inflows, marking the second consecutive week of positive net flows. Bitcoin-based products led these inflows, registering $284 million last week, according to a CoinShares report.
Additionally, BTC’s recovery was bolstered by Kamala Harris’ recent acknowledgment of the crypto industry. Bitcoin rebounded 20% from its monthly lows on September 6, pushing its price towards the $64,000 resistance level, which was last held a month ago. Despite failing to reclaim this key resistance level, Bitcoin’s price has hovered between the $63,000-$63,900 range throughout Monday morning, registering six green daily candles since September 17.
Will BTC See Four Green Months In A Row?
Bitcoin’s recent price action has resulted in positive numbers for the month-to-date (MTD) timeframe, making September a green month for the cryptocurrency. According to Coinglass data, Bitcoin displays a 7.94% return MTD. This performance has caught the attention of market watchers, with some suggesting that Bitcoin is on track to register its best September yet. In a post on X, Crypto Jelle highlighted that BTC “is currently on track for the strongest September performance in its history” after surpassing the MTD return of September 2016.
To analysts, the flagship cryptocurrency appears to be gearing up for a “promising” performance in the next quarter. Jelle also noted that Bitcoin has only closed September with green numbers three times in its history. In each of these instances, Bitcoin’s monthly returns have closed in the green for four consecutive months, suggesting that BTC may be on the verge of a significant bull run for Q4.
If Bitcoin closes this month in the green, the odds are high that October, November, and December will also close positively. Jelle emphasized that this week is “decision time” for the flagship cryptocurrency, as a higher high is “within an arm’s reach.” A push above the $65,000 resistance level could “flip the narrative” and propel BTC to levels not seen since early August.
Potential for Massive Gains
The cryptocurrency’s chart displays a “massive descending broadening wedge,” which has the potential to reach $90,000 after a breakout. Ultimately, analysts believe that Bitcoin won’t trade within this pattern for much longer. As of this writing, Bitcoin is trading at $63,700, reflecting a 1.7% and 10% surge in the daily and weekly timeframes, respectively.
