This article is also available in Spanish.
bitcoin is currently showing bullish price action This has sparked optimism among cryptocurrency investors. The cryptocurrency recently broke through the psychological barrier of $60,000 after three weeks of acting as a feared resistance level. Since breaking through $60,000, bitcoin has continued its ascent and is up 9.8% over the past seven days. Interestingly, the cryptocurrency is up 20% from its lowest point of $52,827 this month.
This price surge comes at a critical time for bitcoin, as September has always been a decisive month for bitcoin price performance in the fourth quarter of the year. According to Coinglass price data, 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 gains or with an overall price increase since its opening on the first day of the month. Throughout bitcoin’s 12-year history, the cryptocurrency has experienced eight “red” Septembers, in which prices closed lower than at the start of the month. In contrast, only three Septembers ended in the green. However, these rare instances of closing in the green have consistently led to strong rallies in the subsequent months of October, November, and December.
Related reading
The first example of a green September occurred in 2015, when bitcoin managed to close with a modest gain of 2.35%. This seemingly small win set the stage for gains in the following months, with a 33.49% increase in October, 19.27% in November, and 13.83% in December. The last green September occurred not too long ago, in 2023. This led to a significant uptrend and green monthly candles over the next six months, culminating in a new all-time high for bitcoin in March 2024.
What to expect from the price of bitcoin
At the time of writing, bitcoin is trading at $63,640. bitcoin has witnessed an influx of investments over the past few days, which has in turn shifted to other cryptocurrencies. The total cryptocurrency market cap now stands at $2.21 billion, up 8.33% in seven days.
Related reading
It is worth noting that the rise in cryptocurrency prices is mainly due to the decision of the United States Federal Reserve bitcoin-rat-returns-ahead-of-fed-rate-cut-decision/” rel=”nofollow”>to cut its benchmark interest rate interest rate by 50 basis points. The measure, which was First rate cut in over a yearIt is considered to be more favorable for risky assets like bitcoin.
Looking ahead, more rate cuts are expected in the coming months. According to the CME Group's FedWatch tool, investors currently have a 100% chance of another rate cut at the next Fed meeting, which is scheduled for November 7. It bodes well for bitcoin and the broader cryptocurrency market as continued rate cuts could lead to sustained bullish price momentum. Cryptocurrency investors You can look ahead Two months of positive price action for bitcoin, with the next targets being breaks above $65,000, $67,000 and $70,000.
Featured image created with Dall.E, chart from Tradingview.com
