Despite September being historically a bearish month for cryptocurrencies, Bitcoin has actually shown remarkable resilience.
Let’s remember that almost three weeks ago, Bitcoin dropped to around $52,500, however, it has staged an impressive comeback, soaring by 22%. Now, the focus is on whether Bitcoin’s value can go above the $65,200 mark, because if it breaks through this threshold, it is possible that there will be shift away from the downtrend that Bitcoin has lingered since its all-time high in March.
It is important to remark that understanding how Bitcoin behaves in the market is crucial for those looking to navigate its ups and downs, and one effective way to do it is by using a 10% price increment system. This approach allows for clearer insights into Bitcoin’s performance relative to its own value, rather than relying on fixed dollar amounts, which can be misleading.
For instance, let’s take Bitcoin’s value of $63,642.94 as of 8:00 AM CST. If we apply the 10% price increment:
- A 10% increase from this price means Bitcoin would rise to $70,007.23. This price level could indicate a bullish trend, suggesting that investor confidence is growing, and a breakout above this level might attract more buyers, potentially leading to further price increases.
- A 10% decrease would mean Bitcoin falls to $57,278.65. This drop might signal a bearish trend, indicating declining investor confidence, and it could a trigger selling pressure, as traders may worry about further declines. In addition, if there is a sustained move below this level, it could uggest a much weaker market sentiment, which could prompt investors to sell off their positions to avoid losses.
In essence, by focusing on percentage changes, we can better gauge Bitcoin’s volatility and trends, as the price points can help us get an idea of whether we are heading into a bullish rally, or if we are bracing for a downturn.
Moreover, it is worth noting that historically, Bitcoin often goes through phases of consolidation, where its price movements become limited for extended periods. For example, during the 2018-2019 market cycle, Bitcoin traded within a narrow range of $8,865 to $9,752 for 155 days. This consolidation followed the impressive bull run of 2017 and occurred before the market began to recover in mid-2019. And although this analysis does not include the significant bear market from November 2018 to May 2019 when Bitcoin dropped below $5,000, it highlights the tendency for the cryptocurrency to stabilize after dramatic price changes.
In addition, let’s highlight that more recently, Bitcoin spent 111 days trading between $54,271 and $59,699, and it has now spent 127 days within the range of $59,700 to $65,670. This means Bitcoin is in another consolidation phase, where its price is not making any big moves up or down. As stated before, these periods can last for a while, and based on what we have seen, it might stay in this range until the end of October.
In conclusion, whether Bitcoin breaks through the $65,200 level soon remains to be seen, however, one thing is clear: the excitement in the crypto market is palpable, and as we await the next pivotal move, let’s remain vigilant and patient. Additionally, remember that the Bitcoin market is characterized by cycles of consolidation and volatility, which presents potential challenges but also opportunities, thus, being prepared and informed is our best strategy moving forward.
