Bitcoin took a sharp hit this week, dropping over 8% from $65,790 to $60,092, partly due to increasing tensions in the Middle East. However, according to crypto analyst Rekt Capital, September’s performance reveals significant trends that may indicate what’s next for the leading cryptocurrency.
Bitcoin’s Strong Start in September
Throughout September, Bitcoin showed promising signs, beginning with a bounce off a key support level in a bargain-buying zone just below the Channel Bottom. From this position, Bitcoin successfully reclaimed the black Downtrending Channel support.
After securing this crucial level, Bitcoin took on the July Downtrend and managed to break through it last week. The next major target was the Channel Top, near $67,000. However, Bitcoin faced rejection at this point, which led to its recent price dip.
Despite the rejection and subsequent 5% price drop, Bitcoin recorded its best-ever September with a monthly return of 7%. According to Rekt Capital, this performance should not be overlooked, as it signifies a major milestone for the cryptocurrency.
Key Levels to Watch
Rekt Capital emphasized that Bitcoin’s recent movement established a Higher High for the first time since late July, a promising sign of a potential upward trend. Additionally, Bitcoin closed the week above the late August resistance level of $64,300, which, if turned into support, could pave the way for further gains.
Should Bitcoin hold above this critical level during the current retrace, it may retest the top of the Downtrending Channel in early October.
However, if Bitcoin fails to maintain this level during its retest, traders should be cautious. A failure could introduce downside volatility, and key support areas reclaimed during the recent upward move will become critical levels to monitor in the event of further declines.
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