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Bitcoin is currently exhibiting bullish price action that has led to optimism among crypto investors. The cryptocurrency recently broke above the psychological price barrier of $60,000 after serving as a feared resistance level for three weeks. Since the $60,000 mark, Bitcoin has continued its run-up and is up 9.8% over the past seven days. Interestingly, the crypto is up 20% from this month’s low of $52,827.
This price increase comes at a crucial point for Bitcoin, as September has always been a make-or-break month for Bitcoin’s price performance in the fourth quarter of the year. According to Coinglass price data, a green close in September foreshadowed 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 with a profit or with a general increase in price from the opening on the first day of the month. Over Bitcoin’s 12-year history, the cryptocurrency has had eight “red” Septembers, in which prices closed lower than they started the month. In contrast, only three Septembers ended in the green. However, these rare instances of a green close have consistently led to strong rallies in the subsequent months of October, November and December.
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The first example of a Green September came in 2015, when Bitcoin managed to close with a modest gain of 2.35%. This seemingly small victory set the stage for gains in the months that followed, with Bitcoin rising 33.49% 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 bull run and green monthly candles for the next six months, culminating in Bitcoin hitting a new all-time high in March 2024.
What to expect from the Bitcoin price
At the time of writing, Bitcoin is trading at $63,640. Bitcoin has witnessed an influx of investments in recent days, which in turn have flowed into other cryptocurrencies. The entire crypto market cap now stands at $2.21 billion, which is an increase of 8.33% in seven days.
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Notably, the rise in cryptocurrency prices is largely due to the decision of the US Federal Reserve lower its benchmark interest rate interest rate by 50 basis points. The move, that was the First interest rate cut in over a yearis considered to be more favorable for risky assets such as Bitcoin.
Looking ahead, further interest rate cuts are expected in the coming months. According to CME Group’s FedWatch Tool, investors are currently anticipating a 100% possibility of another rate cut at the next Fed meeting on November 7. These prospects bodes well for Bitcoin and the broader crypto market, as continued rate cuts could lead to continued upward price momentum. Crypto Investors can look ahead to months of positive price action for Bitcoin, with the next targets being breakouts above $65,000, $67,000, and $70,000.
Featured image created with Dall.E, chart from Tradingview.com