Recent analyses have uncovered a bullish pattern on the Bitcoin chart, suggesting the cryptocurrency could soar as high as $90,000. Crypto analyst Jelle highlights this potential price rally and shares insights into the timeline for this parabolic movement.
This comes at a time of growing optimism for Bitcoin, especially following recent Fed rate cuts.
Understanding the Descending Broadening Wedge Pattern
Jelle identified a descending broadening wedge pattern forming on Bitcoin’s chart, indicating a price target of $90,000.
In his recent X post, he expressed confidence that the breakout towards this target could commence in October. He further mentioned that the fourth quarter of the year is expected to be exciting for Bitcoin, with historical trends suggesting significant returns during this period.
Historical Context for Bitcoin’s Q4 Performance
Historically, Bitcoin has demonstrated a tendency for robust gains in the fourth quarter, particularly during halving years.
The cryptocurrency has recorded positive monthly returns in October, November, and December during the last two halving cycles. As the year progresses, the fourth quarter typically yields the highest returns for Bitcoin.
Key Price Levels for Bitcoin’s Success
In another insightful X post, Jelle outlined critical price levels Bitcoin needs to breach to reach new all-time highs (ATH) and hit the ambitious $90,000 target. He emphasized that surpassing $62,000 would be a solid starting point while breaking above $65,000 would likely propel Bitcoin toward new ATHs.
Currently, Bitcoin’s all-time high stands at $73,000, reached earlier this year.
Despite the fluctuations, analysts believe Bitcoin still has the potential to surpass the $100,000 mark during this bullish run. Notably, Standard Chartered has predicted Bitcoin could hit this milestone, suggesting it could even rise to $150,000 if Donald Trump wins the upcoming election.
Strengthening the Bull Case
Jelle noted that Bitcoin’s bullish case has gained strength following the recent Fed rate cuts. The U.S. Federal Reserve announced a 50 basis point (bps) interest rate cut on September 18, which is generally viewed as positive for Bitcoin.
With an expansionary monetary policy on the horizon, analysts expect increased liquidity in risk assets, including Bitcoin.
This shift in policy is anticipated to spark a price surge for Bitcoin, which has seen stagnant growth amid low demand. The return of bullish sentiment is significant, as it may signal a reversal for Bitcoin’s price trajectory.
Changing Market Sentiment Among Traders
Recent data from crypto analyst Ali Martinez reveals that 61.95% of top traders on Binance are now going long on Bitcoin. This marks a shift in sentiment, considering that just before the rate cuts, 51.41% of traders were shorting Bitcoin.
This newfound bullishness suggests that traders are increasingly optimistic about Bitcoin’s near-term prospects. As of now, Bitcoin is trading at approximately $61,900, reflecting over a 2% increase in the last 24 hours, according to data from CoinMarketCap.
Conclusion
The convergence of a bullish chart pattern, favorable economic conditions, and shifting trader sentiment positions Bitcoin for a potentially lucrative fourth quarter. With analysts predicting a possible surge to $90,000 and beyond, investors should closely monitor market developments as the landscape for Bitcoin continues to evolve.