Bitcoin is currently teetering on a critical support level, but market indicators are hinting at the potential for a bullish reversal. After a tumultuous period marked by wild price swings, Bitcoin appears to have found stability around the $26,000 mark.
Crypto analyst Crypto Rover points out a crucial support level for Bitcoin at approximately $24,800. Should Bitcoin break below this level, it could pave the way for further downward movement. On the flip side, the cryptocurrency’s most significant resistance level stands at around $40,000. A breakthrough past this resistance could trigger a substantial rally in the crypto market.
Interestingly, recent trends have seen Bitcoin moving inversely to the stock market. Historically, when traditional stocks outperform Bitcoin, the cryptocurrency tends to embark on significant upward movements shortly thereafter. This correlation offers valuable insights into Bitcoin’s potential price action.
Delving into historical data, it becomes apparent that September has often presented challenges for Bitcoin, resulting in negative price performance more often than not. However, October typically proves to be a more favorable month for the cryptocurrency.
Notably, crypto expert Benjamin Cowen has identified a worrisome similarity in Bitcoin’s recent performance to past years leading up to a significant event known as the “halving.” This event historically impacted Bitcoin’s price.
Cowen shared on Twitter, “The return for #BTC in August ended up being -11.31%, close to the average of the last two pre-halving years (-11.71%). The average return for #BTC in all prior Septembers in pre-halving years is -17.29% ($21.4k). If you only take the last 2, it is -5.66% ($24.4k).”
To put it in perspective, Bitcoin’s return in August was -11.31%, mirroring the past year’s average of -11.71% before the halving event. Examining all the September preceding halving events, Bitcoin’s return averaged around -17.29%, with an average price of $21,400. These figures suggest that Bitcoin might be following a historical pattern as it approaches the next halving event.
