Cryptocurrency market analysts believe Bitcoin could soon break out despite the current September downturn.
Bullish Divergence and Support
According to crypto analyst Mikybull Crypto, a bullish divergence is forming on Bitcoin's daily chart, suggesting a potential rally. In a Sept. 13 X post, the analyst wrote that Bitcoin is nearing the breaking point out of the range. A bullish divergence is a technical formation used by traders to identify strengthening market momentum following lower lows and is associated with price reversals from downtrends. Analyst Titan of Crypto notes that Bitcoin also retested a key support level, potentially leading to a price breakout above $92,000. In a Sept. 13 X post, the analyst wrote that in previous cycles, when the price retested the 50-week simple moving average, it bounced at least 40%, with an average bounce of 71%. If BTC rallies 71% from the current levels, it could reach $92,000.
Anxiety Stage Before Breakout
CryptoQuant analyst Axel Adler reports that Bitcoin has entered the 'anxiety stage' based on the Net Unrealized Profit/Loss (NUPL) ratio. This means that many short-term investors are underwater, indicating a potential bottom. In a Sept. 13 X post, the analyst wrote that after the belief stage at $72K, NUPL shows a green bar corresponding to the anxiety stage. The best remedy for anxiety among investors is to hold onto their positions.
Historical September Performance
According to Coinglass data, September has historically been a month of poor performance for Bitcoin prices, with average returns at -4.69%, making it the most bearish month based on average returns. Popular analyst Rekt Capital notes that Bitcoin's current downside of -1.59% for the month aligns with previous historical cycles for September. In a Sept. 12 X post, the analyst highlighted that the current values match past historical trends for this time of the year.
Although September has historically been a weak month for Bitcoin performance, analysts suggest that emerging technical indicators might signal an upcoming price breakout.
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