Analysts Predict Final Bitcoin Correction Ahead of October Breakout

Cryptonews John Brightwater September 10, 2024

Analysts Predict Final Bitcoin Correction Ahead of October Breakout

Summary
Analysts forecast a significant Bitcoin breakout in October, likely following one final correction towards $51,000. Recent trends indicate strong ongoing upward momentum, with a historical average return of 22.9% for October. CME gap analysis supports these predictions, and prior halving cycles suggest sustained upward movement during the final months of the year.

Analysts anticipate that Bitcoin is on the verge of a significant breakout, potentially commencing as soon as October, following what they predict to be one final major correction. This projection follows an upward trend during which Bitcoin has been establishing higher highs and higher lows since February 2024. Despite this positive trajectory, chart analysis suggests a possible pullback toward the $51,000 trendline before the next upward movement is realized. In addition, an analysis of the Bitcoin Chicago Mercantile Exchange (CME) gaps indicates the potential for a correction to the $54,000 range before the price resumes its upward trend. This method of gap analysis has gained popularity for identifying probable support and resistance levels during Bitcoin’s momentum breakouts. Several analysts, including the prominent figure Titan of Crypto, affirm the likelihood of a concluding dip that would signify the end of the current consolidation phase for Bitcoin. Titan remarked on September 10, 2024, that “It’s likely time for BTC to wrap up this consolidation phase. History doesn’t always repeat itself, but it often rhymes.” The forthcoming month of October is seen as particularly promising for a Bitcoin breakout due to historically favorable returns. According to CoinGlass data, Bitcoin has averaged a return of 22.9% in October, making it the second most successful month in terms of price action, following November, which boasts an average return of 46.81%. Historical analysis further supports this bullish outlook: during previous halving cycles in 2016 and 2020, Bitcoin experienced sustained upward movement across the months of October, November, and December. Rekt Capital highlighted this in a post on September 8, positing that “It makes most sense to compare 2024 with previous Halving years.” However, it is important to note that this article does not serve as investment advice, as all trading involves risk. Individuals are strongly encouraged to conduct thorough research before making investment decisions.

Bitcoin, the leading cryptocurrency, has displayed a remarkable uptrend since February 2024, characterized by a series of higher highs and higher lows. Analysts focus on potential corrections that could signal the end of Bitcoin’s current consolidation phase prior to a significant breakout. The utilization of CME gap analysis has emerged as a key tool for traders seeking to pinpoint levels of potential support and resistance, crucial for navigating Bitcoin’s price movements. Historically, October has proven to be a favorable month for Bitcoin price increases, reinforcing bullish sentiments among investors in anticipation of further gains based on past performance during halving cycles.

In summary, analysts suggest that Bitcoin is approaching a crucial phase where it may undergo one final correction before entering a potential breakout in October. The importance of historical performance metrics and CME gap analysis underlines the complexity of trading Bitcoin. With positive historical trends indicating substantial monthly returns, Bitcoin’s position heading into October presents a strategic opportunity for careful investors. As always, individuals must exercise prudence and conduct sufficient research when engaging in trading activities.

Original Source: cointelegraph.com