Analysts Anticipate Bitcoin Breakout in September — Is $86,000 Feasible?

Bitcoin may be on the verge of a breakout to unprecedented highs in the upcoming month, but it must first overcome considerable resistance at approximately $59,500.

September Could See Bitcoin Price Surge

According to renowned analyst Rekt Capital, Bitcoin is poised for a potential breakout in September, drawing on historical post-halving price movements, with a target of $86,000 potentially in sight.

In a recent post, Rekt Capital remarked:

“Bitcoin typically enters a Parabolic Phase about 160 days following the Halving. If past patterns hold true, a breakout could happen in just over a month — late September.”

The macroeconomic landscape seems favorable for this movement. Jamie Coutts, a chief cryptocurrency analyst at Real Vision, indicates that Bitcoin is on track for a breakout, attributed to the increasing global M2 money supply.

Coutts stated in a post:

“Historically, Bitcoin tends to reach its low several months before the lowest point of global M2. Following this, it usually surges ahead of liquidity trends, though it may face mid-cycle corrections.”

Increased liquidity from the M2 money supply, along with the introduction of spot Bitcoin exchange-traded funds (ETFs), creates a highly favorable environment, according to Coutts.

Additional positive momentum may arise from the inflow of Bitcoin ETFs, which recently reported a positive net flow of $35.9 million on August 16, based on data from Farside Investors.

Last quarter, institutional adoption of Bitcoin ETFs increased by more than 27%, with 262 new firms investing in spot Bitcoin ETFs.

Potential Target of $86,000

If Bitcoin achieves a breakout this September, the next significant target is likely around $86,000, as suggested by crypto analyst Titan of Crypto.

In a recent post, Titan expressed:

“Intermediate Target for Bitcoin: $86,000. Do you believe this Megaphone Pattern will materialize?”

The Megaphone pattern typically signifies high volatility, presenting either a macro top or bottom in the market, characterized by multiple higher highs and lower lows.

However, Rekt Capital cautions that Bitcoin has not yet established a daily closing price above the current downtrend, indicating the possibility of further declines in the near term:

“Bitcoin will continue to downtrend until it breaks. The key point is that just one Daily Close above the downtrend could reverse the current trajectory.”

These potential “lower lows” could see Bitcoin testing support levels at $54,000 and $50,000 prior to September.

Meanwhile, Bitcoin faces crucial resistance at $59,500. A decisive break above this threshold could liquidate over $800 million in cumulative leveraged short positions across all trading platforms, according to data by Coinglass.

A recovery above $59,900 could escalate the short liquidations to more than $1 billion.

This overview does not constitute financial advice or recommendations. Every investment and trading decision carries risk, and it is crucial for individuals to conduct their own research before proceeding.