Bitcoin’s Potential Breakout in September and the Possibility of Reaching $86K
As September approaches, there is growing anticipation among Bitcoin analysts regarding the possibility of a breakout in the weeks ahead. Drawing from historical chart patterns, experts are speculating that Bitcoin may be poised for a significant surge, with a notable price target of $86,000 potentially on the horizon.
A prominent analyst, with a substantial following of 493,000, shared insights on this matter on X on August 18. According to the analyst, historical data suggests that Bitcoin typically enters the Parabolic Phase of its cycle approximately 160 days following the Halving. Should history repeat itself, Bitcoin could be on the cusp of a breakout, indicating that late September might be a pivotal period for the cryptocurrency.
In addition to historical patterns, the macroeconomic outlook for Bitcoin also appears promising. Jamie Coutts, a chief crypto analyst at Real Vision, highlighted the growing global M2 money supply as a potential driving force behind a breakout for Bitcoin. Coutts observed that over the last decade, Bitcoin has tended to reach a low point several months before the global M2’s bottoming out, leading to a significant surge for the cryptocurrency. This renders the current scenario particularly favorable for Bitcoin.
Other potential catalysts for Bitcoin’s breakout include the expanding global liquidity from the M2 money supply and the emergence of spot Bitcoin exchange-traded funds (ETFs). Notably, positive net flows of $35.9 million were recorded for Bitcoin ETFs on August 16, indicating increasing institutional investor interest in the cryptocurrency.
A crypto analyst, known as Titan of Crypto, put forth a suggested major price target of around $86,000 for Bitcoin should the breakout occur in September. Referencing a “Megaphone Pattern,” the analyst posed the question of whether others would be willing to wager on this pattern playing out.
Nevertheless, Bitcoin is not without its challenges at present. Despite upbeat forecasts, Bitcoin has yet to secure a daily close above its current downtrend, potentially leading to lower lows in the short term. Some analysts caution that Bitcoin may need to retest the $54,000 and $50,000 support levels before any substantial upward movement can ensue.
Furthermore, Bitcoin is currently encountering substantial resistance at the $59,500 level. Should a breakthrough occur at this juncture, it could result in the liquidation of over $800 million worth of leveraged short positions across various exchanges. Additionally, a recovery above $59,900 could bring about short liquidations exceeding $1 billion.
It is imperative to note that this article does not constitute investment advice or recommendations. As with any investment, inherent risks are involved, and readers should conduct thorough research before making any financial decisions. With Bitcoin’s potential breakout on the horizon, it remains to be seen whether the cryptocurrency can meet the optimistic projections outlined by analysts.
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