Bitcoin price has now reached a pivotal moment with bulls targeting the much-anticipated $70,000 mark – last touched on July 24. Following the bullish momentum after the recent Federal Reserve rate cuts, Bitcoin is now approaching key resistance levels and it is expected to have a breakout soon.Â
But the question arises: will Bitcoin manage to break through and rally past $70,000 by the end of September? Let’s dive into the technical and fundamental factors driving the price action alongside a look at Bitcoin’s till-year market performance.
Could BTC Hit $70,000 By September End?
Technical Analysis
The recovery in Bitcoin price gained traction following the Federal Reserve’s rate cut by 50 basis points on September 19. This larger-than-expected cut boosted confidence in the crypto market, driving BTC to break through the middle of its descending channel at the $61,200 mark. This breakout was accompanied by strong trading volume, signaling that market participants are ready to push higher.
However, Bitcoin is now facing short-term resistance at $62,600 to $64,000 range, which is a key Fibonacci retracement level from the August recovery. If Bitcoin breaks through this resistance, it could test the $65,950 level where the 0.618 Fibonacci level looms as another obstacle. A clean break above this could open the pathway for Bitcoin price to surge toward $70,000 and beyond.
On the downside, if Bitcoin fails to hold the $63,600 resistance – a potential pullback could test support between $60,700 and $61,200. Holding this support would maintain the bullish trend, while a failure could trigger a deeper correction back to the $58,300 range. With short-term EMAs showing a bullish crossover, the technical trend remains strong. This suggests that Bitcoin could soon be ready to challenge the $69,270 resistance level, the last hurdle before a move toward $70,000.
A popular crypto trader, Trader Koala’s analysis also aligns with this prediction by highlighting that the Bitcoin price is currently going through a range consolidation and it might sooner have a breakout.
Fundamental Analysis
On the fundamental side, the latest market rally has been fueled by the Fed’s interest rate cut that has bolstered investor confidence. With inflation concerns continuing to plague traditional markets, Bitcoin has become an attractive hedge for many. The rate cut also signals a more dovish monetary policy, which historically benefits risk assets like cryptocurrencies.
Additionally, institutional interest in Bitcoin remains high with increased inflows in the spot Bitcoin ETFs. The growing narrative of Bitcoin as a store of value continues to strengthen as more investors flock to the asset amid macroeconomic uncertainty. However, weekend profit-taking and cautious market sentiment ahead of major resistance levels have slowed Bitcoin’s advance.Â
The next few days will be critical in determining whether bulls have enough momentum to push Bitcoin to new highs or if a period of consolidation is more likely.
Conclusion
Bitcoin’s path to $70,000 hinges on breaking through critical resistance levels at $63,600 and $65,950. The recent gain of 7.67% past this week has bolstered confidence among bulls, and the Fed’s rate cut has provided the fuel for further upside. If Bitcoin can avoid a pullback and sustain its momentum, a breakout past $70,000 by the end of September is a realistic target.
However, caution is warranted as historical performance suggests that September can be volatile for Bitcoin. A failure to hold key support levels around $60,700 could see Bitcoin dip back to the $58,300 range. But with technical indicators showing bullish signals and institutional interest at a high, the overall trend points toward a promising recovery, with $70,000 in sight if the market momentum persists.
