Markets
Analysts Point to September for Potential Bitcoin Breakout Despite Recent Pullback
On July 30, Bitcoin prices dropped to an intraday low of $65,563, marking a 6% decline since the start of the week.
The business rallied to recover $66,000 but failed to maintain that level, fall again below that level during the Asian trading session on Wednesday morning.
However, BTC markets remain in a tight five-month channel and analysts are confident that the coming months will see an acceleration to the upside.
When will Bitcoin explode?
On July 30, cryptocurrency analyst “Rekt Capital” said that “Bitcoin is still on track for a breakout in September.”
“History suggests that an exit from the reaccumulation range just 100 days after the halving would have been unlikely,” he added regarding the premise of a current exit.
In the last cycle, the break occurred about 160 days after the halving, so if history rhymes, this would be in September.
Furthermore, the last time the cycle peaked it didn’t occur until the end of the following year, so that would mean it wouldn’t peak until Q4 2025.
Trader Bob Loukas echoed the sentiment in a July 30 post on X, predicting a “solid breakout to all-time highs for Bitcoin” around September 15.
It also has expected that the asset would hit $100,000 by December 1, adding: “At least that’s within a very reasonable cycle projection based on past behavior.”
Another market catalyst
The Federal Reserve is also due to hold a very important meeting on September 18, which will likely see a rate cut for the first time since early 2020. According to CME Group, the chance of a rate cut in September is 85.8%.
Lower interest rates are generally positive for high-risk assets like cryptocurrencies, as borrowing becomes cheaper, markets become more liquid, and risk appetite increases due to lower interest returns on capital.
There is also a Fed meeting today, July 31, when policymakers will shed light on monetary policy. However, it has been widely expected that the US central bank will keep rates unchanged at 5.25%-5.50%.
Markets appear to have already calculated this, with cryptocurrencies and major tech stocks falling this week. The total cryptocurrency market cap has fallen 2% since the start of the week to $2.47 trillion at the time of writing.