Bitcoin Surges Above $65,000: Is Another Bull Run Imminent?

Bitcoin Breaks Through $65,000 Barrier, Igniting Bullish Sentiment

\n\n

Bitcoin (BTC) has reclaimed the $65,000 mark for the first time in nearly two months, signaling a strong recovery after facing two significant downturns in August and September. The cryptocurrency plunged 20% on August 5th and again on September 6th, but October seems to be ushering in a renewed sense of optimism. With a historical tendency for bullish activity in October, many analysts are predicting that Bitcoin could be poised for another major uptrend.

\n\n

Could Bitcoin Hit $79,000 in October?

\n\n

Bitcoin experienced a 3% surge within a 24-hour period on Thursday, pushing its price to $65,500. This upward trajectory has sparked discussions among analysts about the potential for a parabolic bull run. Crypto investor Scott Melker highlights Bitcoin’s attempt to establish its first higher high since reaching $74,000 in March. Melker suggests that closing above $65,000 would confirm a new upward trend, marking a shift from the August lows of $50,000.

\n\n

This pattern – a low, high, higher low, and higher high – suggests a bullish market structure replacing the previous bearish trends. Historically, October has been a strong month for Bitcoin. Lark Davis, a prominent analyst, points out that the average return during this month is approximately 22.90%. If Bitcoin were to follow this trend, it could potentially rise to $79,000, surpassing its previous all-time high and overcoming key resistance levels. According to Davis’ analysis, such a move could set the stage for a powerful rally into November.

\n\n

Record-Breaking Performance in September

\n\n

Rekt Capital, a prominent analyst, provides insights into Bitcoin’s recent performance. He notes that September, often viewed negatively, turned out to be the best September for Bitcoin on record, with a 9% increase. Rekt also highlights historical patterns related to Bitcoin’s Halving cycles, indicating that Bitcoin typically breaks out from its re-accumulation range approximately 154 to 163 days post-Halving. Currently, Bitcoin is 159 days past its last Halving, which occurred in April of this year. Based on these cycles, Rekt believes that a breakout could be imminent, reinforcing the idea of significant gains in the near future.

\n\n

Dovish Fed Stance and ETF Inflows Fueling the Surge

\n\n

The current resurgence can be attributed to several key factors, including the US Federal Reserve’s (Fed’s) dovish stance and recent 0.50% basis point (bps) interest rate cut on September 18th. This move acted as a significant bullish catalyst, not only for BTC but also for the broader market, which has followed Bitcoin’s upward performance in recent days.

\n\n

Furthermore, last week saw a resumption of inflows into the Bitcoin ETF market, following steady outflows throughout August and early September. For instance, US spot Bitcoin ETFs recorded a total net inflow of $106 million on Wednesday, continuing their net inflows for 5 consecutive days. BlackRock’s IBIT ETF saw an inflow of $184 million.

\n\n

A Strong Bullish Outlook for Bitcoin

\n\n

Overall, a confluence of bullish catalysts appears to be in place for the market’s largest cryptocurrency, suggesting continued recovery and potential for massive gains in the latter half of the year and early 2025.