Since March, Bitcoin has been experiencing a period of sideways trading, with the third quarter, particularly September, being a historically bearish time.
As we near the end of the month and quarter, analysts are becoming optimistic again, forecasting a long-awaited breakout for Bitcoin and the wider crypto market.
On September 18, analyst ‘RamenPanda’ noted that markets have been stagnant for six months, during which “the price is only slightly lower than the previous high.”
Bitcoin has once again crossed the $60,000 mark and is currently only 18% below its all-time high.
Big Moves on the Horizon
The analyst emphasized that the extended sideways movement will likely lead to a significant rally.
“If you think we won’t witness a world-shocking rally soon, you’re absolutely mistaken. All this time spent in limbo will lead to strong upward movement.”
Look, we’ve been without significant price movement for 6 months, yet the price is barely down from the previous high.
Corrections can occur in two ways: through price changes or time.
A time-based correction, which I would call capitulation, is extremely bullish.
If you think we won’t have an astonishing rally next,… pic.twitter.com/00RXuAzINB
— RamenPanda (@IamRamenPanda) September 17, 2024
In the meantime, economist Alex Krüger noted that “the sentiment among crypto traders is at its lowest since 2022.” He also pointed out that Bitcoin’s current trading level is similar to what it was six months prior, in a post on X on September 18.
On September 17, Capriole Fund founder Charles Edwards stated, “You’ve survived the toughest period in Bitcoin,” highlighting that Q3 is recognized as typically bearish, while Q4 usually trends bullish.
Similarly, analyst ‘Income Sharks’ shared the perspective that a significant price increase is anticipated in Q4.
#Bitcoin – If Q4 doesn’t bring excitement after this build-up, I’m not sure what to say. The price is nicely positioned in the channel and OBV is right at the peak of the wedge. pic.twitter.com/IOWObF1BV6
— IncomeSharks (@IncomeSharks) September 17, 2024
Bitcoin briefly reached $61,000 in late hours on September 17 but has declined to approximately $60,500 during the Asian trading session on Wednesday morning. In the last week, it has recovered from September’s lows, showing a 6.7% increase.
Anticipated Fed Rate Cuts
On September 18, the U.S. central bank is anticipated to reduce interest rates. However, there’s some uncertainty in the markets regarding the extent of this cut.
Currently, the CME Fed Watch tool indicates a preference for a more substantial cut, with 65% likelihood of a 50 basis point decrease, compared to 35% for a smaller 25 basis point reduction.
Analysts believe that a larger rate cut would benefit high-risk assets like cryptocurrency.
“Historically, when the Fed cuts rates, Bitcoin tends to soar. If history holds true, the upcoming 6-12 months could be phenomenal,” remarked crypto YouTuber Lark Davis on X on September 17.
The Fed is expected to announce an interest rate cut tomorrow.
Previously, when the Fed cut rates, Bitcoin saw explosive growth.
If the past repeats itself, the next 6-12 months could be extraordinary.
h/t/ @milkroaddaily pic.twitter.com/GxNtThDDwS
— Lark Davis (@TheCryptoLark) September 17, 2024
Nonetheless, the Kobeissi Letter warned, “We’ve never faced a more unpredictable Fed meeting on record,” adding, “Whatever the Fed decides, half of the market will likely be dissatisfied.”
Image Source: Hi my name is Jacco / Shutterstock
