Bitcoin Support Retests Reflect September 2023 Patterns: Is Another Bull Run Coming?

Ronaldo Marquez

9 months ago

3 mins read

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Created by industry experts and meticulously reviewed

The highest standards in reporting and publishing

How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

Bitcoin has faced significant price fluctuations marked by a notable crash on August 5 that saw its value dip to $49,000. This was followed by a rebound to approximately $65,000, only to experience another decline to around $52,000 last Friday.

Despite these challenges, the largest cryptocurrency by market capitalization is undergoing crucial support retests, reminiscent of the patterns observed in September 2023 before it soared to an all-time high of $73,700 in March.

Bitcoin May Hit New All-Time Highs

Crypto analyst Crypto Con highlighted this trend in a social media post, emphasizing Bitcoin’s spent output profit ratio (SOPR). According to Con, previous peaks have correlated with the 1.0 value line on the SOPR chart, where the cryptocurrency typically finds a bottom before entering a bull market phase.

This cyclical behavior has been consistent around specific months—October, August, and September—drawing parallels to the recession predictions that have emerged recently, much like in September 2023 and at the cycle bottom in November 2022 following crypto exchange FTX’s implosion.

The current indicators suggest that Bitcoin may be on the verge of a significant price uptick, potentially surpassing its previous all-time highs. This bullish sentiment is bolstered by historical data that show Bitcoin’s propensity to break through past peaks, as seen in the chart above.

Is September A ‘Fake-Breakdown Month’?

In a more granular analysis of short-term price action, fellow analyst Rekt Capital pointed out that Bitcoin’s weekly close above $53,250 is crucial for maintaining the support level within the bargain-buying range of $52,000 to $55,000.

This range forms beneath a downward-trending channel spotted by the analyst at $56,500 on Bitcoin’s weekly chart. Rekt emphasized that reclaiming $55,881 as support would be essential for Bitcoin to build momentum and attempt a recovery within the channel.

Furthermore, Rekt raised an interesting hypothesis about September potentially being a “fake-breakdown month.” Historical data indicate that September typically sees an average monthly return of -5%, while October averages 22.90%.

This pattern suggests that any support that the Bitcoin price appears to have lost during the past month could be swiftly reclaimed, especially as the cryptocurrency currently trades around $56,600. Should October follow its historical trend, a 22.90% increase would position Bitcoin below its all-time high at approximately $68,780.

At the time of writing, the largest cryptocurrency on the market records a 4% increase in the 24-hour time frame, resulting in its price regaining the $56,600 mark. However, over the last 30 days, BTC has recorded losses of over 7%.

Featured image from DALL-E, chart from TradingView.com

Ronaldo Marquez

Ronaldo is an experienced crypto enthusiast dedicated to the nascent and ever-evolving industry. With over five years of extensive research and unwavering dedication, he has cultivated a profound interest in the world of cryptocurrencies.

Ronaldo's journey began with a spark of curiosity, which soon transformed into a deep passion for understanding the intricacies of this groundbreaking technology.

Driven by an insatiable thirst for knowledge, Ronaldo has delved into the depths of the crypto space, exploring its various facets, from blockchain fundamentals to market trends and investment strategies. His tireless exploration and commitment to staying up-to-date with the latest developments have granted him a unique perspective on the industry.

One of Ronaldo's defining areas of expertise lies in technical analysis. He firmly believes that studying charts and deciphering price movements provides valuable insights into the market. Ronaldo recognizes that patterns exist within the chaos of crypto charts, and by utilizing technical analysis tools and indicators, he can unlock hidden opportunities and make informed investment decisions. His dedication to mastering this analytical approach has allowed him to navigate the volatile crypto market with confidence and precision.

Ronaldo's commitment to his craft goes beyond personal gain. He is passionate about sharing his knowledge and insights with others, empowering them to make well-informed decisions in the crypto space. Ronaldo's writing is a testament to his dedication, providing readers with meaningful analysis and up-to-date news. He strives to offer a comprehensive understanding of the crypto industry, helping readers navigate its complexities and seize opportunities.

Outside of the crypto realm, Ronaldo enjoys indulging in other passions. As an avid sports fan, he finds joy in watching exhilarating sporting events, witnessing the triumphs and challenges of athletes pushing their limits. Furthermore, His passion for languages extends beyond mere communication; he aspires to master German, French, Italian, and Portuguese, in addition to his native Spanish. Recognizing the value of linguistic proficiency, Ronaldo aims to enhance his work prospects, personal relationships, and overall growth.

However, Ronaldo's aspirations extend far beyond language acquisition. He believes that the future of the crypto industry holds immense potential as a groundbreaking force in history. With unwavering conviction, he envisions a world where cryptocurrencies unlock financial freedom for all and become catalysts for societal development and growth. Ronaldo is determined to prepare himself for this transformative era, ensuring he is well-equipped to navigate the crypto landscape.

Ronaldo also recognizes the importance of maintaining a healthy body and mind, regularly hitting the gym to stay physically fit. He immerses himself in books and podcasts that inspire him to become the best version of himself, constantly seeking new ways to expand his horizons and knowledge.

With a genuine desire to become the best version of himself, Ronaldo is committed to continuous improvement. He sets personal goals, embraces challenges, and seeks opportunities for growth and self-reflection. Ultimately, combining his passion for cryptocurrencies, dedication to learning, and commitment to personal development, Ronaldo aims to go hand-in-hand with the exciting new era that the emerging crypto technology is bringing to the world and societies.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.