Here’s Why A Green September Close Is Important For The Bitcoin Price

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Bitcoin is currently exhibiting bullish price action that has sparked optimism among crypto investors. The cryptocurrency recently broke above the psychological $60,000 price barrier after three weeks of acting as a dreaded resistance level. Since breaking past $60,000, Bitcoin has continued the run-up and has increased by 9.8% in the past seven days. Interestingly, the crypto is up by 20% from its lowest point of $52,827 this month.

This price increase comes at a critical point for Bitcoin, as September has always been a make-or-break month for Bitcoin’s price performance in the fourth quarter of the year. According to price data from Coinglass, a green close in September has been a precursor to strong performance in October, November, and December.

Historical Trends And The Importance Of A Green September

A ‘green’ September refers to Bitcoin closing the month in profit or with an overall price increase from its opening on the first day of the month. Over the span of Bitcoin’s 12-year history, the cryptocurrency has seen eight ‘red’ Septembers, where prices closed lower than they started the month. In contrast, only three Septembers have ended in green. However, these rare instances of a green close have consistently led to strong rallies in the subsequent months of October, November, and December.

What To Expect From The Bitcoin Price

At the time of writing, Bitcoin is trading at $63,640. Bitcoin has witnessed an influx of investments in the past few days, which in turn has flowed into other cryptocurrencies. The entire crypto market cap now stands at $2.21 billion, which is an 8.33% increase in seven days.

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Notably, the increase in cryptocurrency prices is mostly due to the United States Federal Reserve’s decision to cut its benchmark interest rate by 50 basis points. The move, which was the first rate cut in over a year, is deemed to be more favorable for risky assets like Bitcoin.

Looking ahead, further rate cuts are expected in the coming months. According to the CME Group’s FedWatch Tool, investors are currently on a 100% possibility of another rate cut in the next Fed meeting held on November 7. This outlook bodes well for Bitcoin and the broader crypto market, as continued rate cuts could lead to sustained upward price momentum. Crypto investors can look forward to months of positive price action for Bitcoin, with the next targets being breakouts above $65,000, $67,000, and $70,000.