Bitcoin began this week with plenty of ups and downs, currently hovering around $59,000 with a slight 1% increase. Historically, September has been a challenging month for Bitcoin, often showing mostly negative returns.
Prominent crypto analyst Titan of Crypto suggests that Bitcoin could either be on the verge of a major rally or facing a final capitulation before a potential rebound. Here’s a closer look at the two scenarios that could shape Bitcoin’s price in the coming months.
Scenario 1: The Bullish Breakout
According to Titan of Crypto, Bitcoin is currently in a consolidation phase within a falling wedge pattern. If Bitcoin can break through the $65,000 mark, it could trigger a significant rally.
In this scenario, Bitcoin might surge to around $150,000 by the end of the year. This would show a strong bullish trend and renewed optimism among investors.
Scenario 2: Final Capitulation
On the flip side, Titan of Crypto also considers the possibility of a final capitulation. This would involve Bitcoin dipping back to its trendline and potentially falling below the early August lows which is at $49,000 before starting a slow recovery.
Such a capitulation could be a final shakeout of weaker investors before a gradual rally gains traction.
As Bitcoin continues to fluctuate, these scenarios highlight the critical points to watch. While a breakout above $65,000 could lead to a dramatic surge in Bitcoin’s price, a final capitulation could set the stage for a more gradual recovery.
Bitcoin’s Current Move: Consolidation or Breakout?
As of now, Bitcoin’s price stands at $59,105.22, up by 1% over the last 24 hours. Despite this slight rise, its trading volume has dropped by 19% to $23.65 billion. Meanwhile, the cryptocurrency is struggling to break through the $60,000 barrier and is focused on pushing past $61,718 to sustain its bullish trend.
Earlier in mid-Auguest Bitcoin attempted to surpass this $61,718 level but failed, resulting in a drop below this resistance. As a result, Bitcoin is now consolidating between this resistance level and the $58,000 support. This consolidation phase may delay a significant breakout from its current price range.
On a positive note, Bitcoin Futures Open Interest (OI) has risen by 1% to $30.43 billion, indicating a generally optimistic market sentiment towards the cryptocurrency.