Bitcoin has seen significant price swings, marked by notable crash of August 5 that its value fell to $49,000. This was followed by a rebound to around $65,000, but then fell again last Friday to around $52,000.
Despite these challenges, the largest cryptocurrency by market cap is seeing important retests of support levels, reminiscent of trends seen in September 2023 before it soared to an all-time high of $73,700 in March.
Bitcoin May Reach New All-Time Highs
Crypto analyst Crypto Con highlighted this trend in social media posthighlighting Bitcoin’s Spent Value Profit Ratio (SOPR). According to Cohn, previous peaks have correlated with the 1.0 value line on the SOPR chart, where the cryptocurrency typically bottoms before entering a bull market.
This cyclical behavior was consistent during certain months—October, August, and September—which is reminiscent of recent recession forecasts, such as in September 2023 and in cycle bottom in November 2022 after the collapse of the FTX cryptocurrency exchange.
Current indicators suggest that Bitcoin may be on the verge of a significant price increase, potentially surpassing previous levels. record highsThis optimistic sentiment is supported by historical data that shows Bitcoin’s tendency to break past peaks, as shown in the chart above.
September – the month of fake failures?
In a more detailed analysis of short-term price action, fellow analyst Rekt Capital indicated that a weekly close for Bitcoin above $53,250 is critical to maintaining support within the profitable buying range of $52,000 to $55,000.
This range is forming under the descending trend channel that the analyst noticed at $56,500 on the weekly Bitcoin chart. Recht emphasized that the return of $55,881 as support It will be critical for Bitcoin to gain momentum and try to recover within the channel.
In addition, Recht put forward an interesting hypothesis that September could become a “false failure month.” Historical data show that in September the average monthly return is usually -5%, and in October – 22.90%.
This pattern suggests that any support that Bitcoin’s price appears to have lost over the past month could be quickly regained, especially given that the cryptocurrency is currently trading around $56,600. If October follows its historical trend, a 22.90% gain would take Bitcoin below its all-time high of around $68,780.
At the time of writing, the largest cryptocurrency on the market has recorded a 4% gain in the 24-hour period, bringing its price back to $56,600. However, over the past 30 days, BTC has recorded losses of more than 7%.
Main image from DALL-E, chart from TradingView.com
