Analysts eye September for Bitcoin breakout
Bitcoin's value took a dip, reaching a low of $65,563 on July 30, which represents a decline of 6% since the week started.
Though Bitcoin clawed its way back over $66,000, it struggled to maintain this level, slipping below it again during Wednesday's morning trade session in Asia.
Still, the general sentiment surrounding BTC markets keeps a positive tone, maintaining within a five-month sideways trading band, with market experts anticipating a bullish breakout in the near future.
On the last day of July, cryptocurrency analyst ‘Rekt Capital’ mentioned, Bitcoin remains on a steady course towards a breakout in September.
He discussed the improbability of a breakout happening just 100 days following a halving event, based on historical patterns. Given past trends, a breakout around 160 days post-halving seems more plausible, pointing towards a potential surge in September.
Additionally, comparing with the previous cycle, he suggested that the cycle’s pinnacle might not be reached until the final quarter of 2025.
Trader Bob Loukas shared similar expectations on X, predicting a noticeable surge to new highs for Bitcoin around September 15.
He further anticipated Bitcoin hitting the $100,000 mark by December 1, remarking, this is well within the realm of possibility, considering historical cycle analyses.
A critical meeting of the Federal Reserve is scheduled for September 18, with expectations high for the first interest rate cut since the early parts of 2020. Presently, CME Group reports an 85.8% chance of a rate drop happening in September.
Typically, lower interest rates bode well for assets deemed high-risk, like cryptocurrencies, since it leads to cheaper borrowing rates, increased market liquidity, and a higher inclination toward risk from investors due to diminishing interest returns on capital.
Another meeting by the Fed is set for today, July 31, where discussions on monetary policy will take place. It is widely anticipated that the central bank will maintain the current rates between 5.25% to 5.50%.
The financial markets seem to have already priced in this expectation, with a downturn in crypto assets and major tech stocks noted this week. As of now, the total market capitalization for cryptocurrencies has seen a 2% decline since the start of the week, totaling $2.47 trillion.
