Bitcoin has recently been on an interesting trajectory, and plenty of volatility to go along with that in the past month. Now as we near September, it broke past its old high of $62,000 and is now sitting near $63,800. As the new week approaches, the main question is whether Bitcoin can sustain this momentum.
According to analyst Crypto Rover, with more than 800,000 followers on X, Bitcoin has just broken through a crucial resistance point, which could pave the way for even higher prices. If the current support holds, we might see a breakout to $65,000 and possibly $68,000 in the very near future.
#Bitcoin broke the most important resistance box.
We are going higher. pic.twitter.com/lOgat1rVKx
— Crypto Rover (@rovercrc) August 26, 2024
So, what’s driving this optimism? One major factor is the recent Bitcoin halving, which happened about four months ago. As a result of the halving, the reward for mining Bitcoin is cut in half, reducing the rate at which new Bitcoins are created. This often leads to a supply shock—a situation where the demand for Bitcoin stays the same or increases, but there’s less of it available. As you can imagine, this can push prices up.
Bart Simpson spoiling a short-term breakout?
But not everyone is on the same page. Some analysts think we might see a short-term dip before any big gains. Specifically, there’s talk of a “Bart Simpson” pattern forming. If you’re wondering what that is, it’s a pattern where Bitcoin’s price suddenly spikes up, then drops just as quickly, resembling Bart Simpson’s head. According to these analysts, this could mean a pullback to $62,000 before we see any further rise.
https://twitter.com/CrypNuevo/status/1827687070057332844
A September Breakout?
On the other hand, Rekt Capital, another well-known analyst, isn’t too worried about these short-term fluctuations. He’s looking at the bigger picture, expecting Bitcoin to break out in a big way by the end of September. His prediction is based on historical data, noting that Bitcoin has spent most of the last six months consolidating—basically, moving within a tight price range without much action. This kind of consolidation often precedes a reaccumulation phase, where savvy investors start buying up Bitcoin in anticipation of the next big move. And with the potential supply shock we talked about earlier, this could be the setup for a massive price jump, and a new all-time high.
Bitcoin has been consolidating for almost 6 months
But this current ReAccumulation Range isn't even the longest one in this cycle
From formation to breakout, the 2023 ReAccumulation lasted longer at 224 days
If history were to repeat, then Bitcoin would breakout in… https://t.co/nbVk8hAzj2 pic.twitter.com/FCaantr3zX
— Rekt Capital (@rektcapital) August 25, 2024
Adding to the optimism is the recent news from the Federal Reserve. On Friday, they hinted at multiple interest rate cuts, which is generally good news for Bitcoin. Lower interest rates can lead to more investment in assets like Bitcoin, as traditional savings options become less attractive. The rise in activity from the U.S. Bitcoin ETFs in the last week, with more than half a billion USD flowing in, is another signal that something big is coming.
While we can’t say for sure what’s going to happen next, one thing is clear: the coming weeks could be crucial for Bitcoin in its current cycle. Keep following us at HowToBuyBitcoin.org for the latest news and insights on Bitcoin.