Originally published on: September 30, 2024
Bitcoin has experienced a bout of volatility, dropping below $64,000 on September 30th. However, despite relinquishing some of its gains, Bitcoin is poised to record its strongest monthly gains in September, surpassing the 6.04% increase seen in 2016 based on CoinGlass data.
Traders may be optimistic about Bitcoin’s performance entering the fourth quarter as historical data indicates that October has been one of the strongest months, with average gains of 22.90% and median gains of 27.70%. If history repeats itself, we may see Bitcoin hitting new highs in the coming months.
CK Zheng, chief investment officer at ZX Squared Capital, highlighted the upcoming US presidential election as a bullish trigger for Bitcoin. Both the Republican and Democratic parties have failed to effectively address the increasing debts and deficits, creating favorable conditions for Bitcoin.
The S&P 500 Index has remained above the breakout level of 5,670, but the lack of momentum in the up-move suggests caution among buyers. A correction to 5,670 could act as a strong support level, paving the way for a potential rally to 6,000 if the bulls maintain control.
The US Dollar Index (DXY) remains in a downtrend, with sellers aiming to strengthen their position by targeting critical support at 99.57. If this level holds, buyers may attempt to push the price above the 20-day EMA to shift the momentum in favor of the bulls.
Bitcoin closed above $65,000 on September 26 but faced selling pressure that resulted in a pullback below the breakout level. The 20-day EMA is a key support level that buyers must defend to prevent further downside, with the potential for a rally towards $70,000 if successful.
Ethereum’s price struggle to break above resistance suggests a possible move towards $2,850 and $3,400 if buyers can maintain control. Conversely, a break below moving averages could keep the price range-bound within a symmetrical triangle pattern.
Other altcoins like BNB, Solana, XRP, DOGE, TON, and ADA are also facing challenges at resistance levels, with potential upside or downside movements depending on key support and resistance levels.
In conclusion, while the market remains uncertain and subject to volatility, investors should conduct their own research and due diligence before making any investment decisions.
