The price of bitcoin has seen significant fluctuations, including a drop to $49,000 on August 5, a rebound to around $65,000, and a further drop to around $52,000 last Friday.
Despite these challenges, the largest cryptocurrency by market cap is undergoing crucial support retests, reminiscent of patterns seen in September 2023 before soaring to an all-time high of $73,700 in March.
bitcoin could reach new all-time highs
Cryptocurrency analyst crypto Con highlighted this trend in ax.com/CryptoCon_/status/1833186327443153136″ target=”_blank”> social media posthighlighting bitcoin’s Spent Output Profit Ratio (SOPR). According to Con, previous spikes have correlated with the 1.0 value line on the SOPR chart, where the cryptocurrency typically finds a bottom before entering a bull market phase.
This cyclical behavior has been consistent in specific months (October, August, and September), drawing parallels with recession predictions that have emerged recently, such as in September 2023 and at the bottom of the cycle in November 2022 following the implosion of the FTX cryptocurrency exchange.
<img class="size-large wp-image-640840" src="https://technicalterrence.com/wp-content/uploads/2024/09/Bitcoins-new-support-tests-reflect-September-2023-patterns-Is-another.jpeg" alt="bitcoin” srcset=”https://www.newsbtc.com/wp-content/uploads/2024/09/GXDH1KCWcAAW8h_.jpeg?w=4072 4072w, https://www.newsbtc.com/wp-content/uploads/2024/09/GXDH1KCWcAAW8h_.jpeg?w=460 460w, https://www.newsbtc.com/wp-content/uploads/2024/09/GXDH1KCWcAAW8h_.jpeg?w=768 768w, https://technicalterrence.com/wp-content/uploads/2024/09/Bitcoins-new-support-tests-reflect-September-2023-patterns-Is-another.jpeg 860w, https://www.newsbtc.com/wp-content/uploads/2024/09/GXDH1KCWcAAW8h_.jpeg?w=1536 1536w, https://www.newsbtc.com/wp-content/uploads/2024/09/GXDH1KCWcAAW8h_.jpeg?w=2048 2048w, https://www.newsbtc.com/wp-content/uploads/2024/09/GXDH1KCWcAAW8h_.jpeg?w=750 750w, https://www.newsbtc.com/wp-content/uploads/2024/09/GXDH1KCWcAAW8h_.jpeg?w=1140 1140w, https://www.newsbtc.com/wp-content/uploads/2024/09/GXDH1KCWcAAW8h_.jpeg?w=3000 3000w” />
Current indicators suggest that bitcoin may be on the verge of a significant price rally, potentially surpassing its previous all-time highs. This bullish sentiment is reinforced by historical data showing bitcoin’s propensity to surpass past peaks, as seen in the chart above.
Is September a “month of false breakdowns”?
In a more granular analysis of the short-term price action, analyst Rekt Capital x.com/rektcapital/status/1833147618521702691″ target=”_blank”>pointed out
This range is forming beneath a downtrend channel spotted by the analyst at $56,500 on bitcoin’s weekly chart. Rekt emphasized that reclaiming $55,881 as support would be essential for bitcoin to gain momentum and attempt a recovery within the channel.
Rekt also raised an interesting hypothesis: September could be a “month of false crises.” x.com/rektcapital/status/1833190549811319172″ target=”_blank”>Historical data They indicate that September typically has an average monthly return of -5%, while October averages 22.90%.
This pattern suggests that any support that bitcoin price appears to have lost over the past month could be quickly regained, especially since the cryptocurrency is currently trading around $56,600. If October follows its historical trend, a 22.90% increase would put bitcoin below its all-time high of roughly $68,780.
x/eAcyV9c8/” alt=”bitcoin” />
At the time of writing, the largest cryptocurrency on the market is recording a 4% increase in the 24-hour time frame, which makes its price regain the $56,600 mark. However, over the past 30 days, btc has recorded losses of over 7%.
Featured image of DALL-E, chart from TradingView.com
