1 August 2024
As summer is currently fast approaching, several crypto traders and analysts have cranked up their optimism for Bitcoin price trajectory. Among them is well-known crypto analyst, Rekt Capital, who has recently shared insights on BTC next move, suggesting that the asset is poised for a significant breakout in September. This sentiment is echoed by other market analysts who have been closely analyzing recent trends and historical data.
What the Bullish September Sentiment Is Based On
Rekt Capital pointed out that despite Bitcoin’s failure to break out from its reaccumulation range post-April’s Bitcoin halving, it is still “on track for a September breakout”. Reaccumulation phases are typically characterized by savvy investors accumulating assets in anticipation of a price surge.
Related Reading: Is A Major Bitcoin Dip Coming? What the Coinbase Index Tells Us
This phase often sets the stage for strong market rallies. However, the complexity of current market conditions means that patience is essential, and the expected movements may unfold more gradually. Rekt Capital noted:
History suggests that a breakout from the ReAccumulation Range mere ~100 days after the Halving was always going to be unlikely.
Meanwhile, another prominent analyst, Daan Crypto Trades, has recently highlighted the technical patterns forming around Bitcoin’s price.
According to Daan, the proximity of lower highs suggests significant liquidity above these levels, likely influenced by stop losses and short liquidations. This setup indicates that surpassing the June 7th high could trigger a comprehensive breakout, overcoming previous resistance levels.
Conversely, support levels around $63,000-$63.5,000 are also crucial, as they represent areas where many investors might have placed long stop orders. This creates a balanced playfield, with Bitcoin trading in what Daan describes as “the middle of nowhere,” reflecting a market awaiting a clear directional signal.
#Bitcoin With a couple of lower highs in close proximity of each other.
Likely for a lot of liquidity to sit above these levels in the form of stop losses/liquidation levels from shorts.
Seeing it’s also at all time high, I think once we take the June 7th high we’ll break all.… pic.twitter.com/O4B0CA0dBM
— Daan Crypto Trades (@DaanCrypto) July 30, 2024
Bitcoin Market Performance and Fundamentals
Currently, Bitcoin is trading at a price of $66,352, at the time of writing, following a 0.7% increase in the past 24 hours. This price performance although small, has resulted in a roughly $6 billion added to the asset’s market cap.
While Bitcoin’s current market performance might not be that appealing, a notable metric of the asset has suggested an interesting impending move.
Particularly supporting the bullish outlook mentioned above, a CryptoQuant analyst recently observed a notable increase in Bitcoin withdrawals from exchanges.
This trend, according to the analyst, can be a positive sign which could result in upward movement for Bitcoin as the available supply on exchanges diminishes, potentially driving prices higher if demand spikes.
Featured image created with DALL-E, Chart from TradingView