Pseudonymous crypto analyst @pakpakchicken on X (formerly Twitter) is one of the analysts who were able to correctly call the market bottom during the Bitcoin price decline back at the start of September. With the prediction playing out as expected, the crypto analyst has once again taken to the social media platform to inform Bitcoin investors of what they should do next as the price continues its recovery.

Bitcoin Could Keep Going Up

Back in early September, the crypto analyst shared a liquidation heatmap that showed that the majority of Bitcoin traders had suffered massive losses. The decline below $57,000 wiped out the majority of positions, propelling liquidations to new highs. At the time, the crypto analyst encouraged investors to get into Bitcoin as the price crash was the time to get into the cryptocurrency.

As the analyst explained, the times when traders make the most money are when they actually buy during times when the market is down. Then to top it off, he explained that the Federal Reserve would be cutting rates, which would propel the Bitcoin price higher. As expected, the Fed did cut rates last week, pushing Bitcoin and the crypto market into the green.

Now that the Bitcoin price is on the up and up, the crypto analyst explained that it is time to switch strategies. While profit-taking may be enticing during times like this, he urges investors to hold on and wait for better prices. Mainly, the advice is that the investors hold into 2025.

“We’ve been programmed to take profit for chopping markets, we forget how is it like during trending markets,” the crypto analyst said. “Switch your strategy. It’s time. Don’t take profit too early. Be more tolerant to dips. For now, I see a clear path to mid 2025.”

Entering A Bullish Quarter

Bitcoin is on the verge of recording its most bullish month of September so far, suggesting that the next few months will be very bullish for the cryptocurrency’s price. So far, according to data from the Coinglass website, the Bitcoin price is already up 7.28%, beatings its September 2016 record of 6.04%.

However, what is most interesting about the month of September closing in the green is what has has occurred during the years when this month has closed in the green. Any time September has ended in green, the months of October, November, and December have also ended in green.

Given this, if the Bitcoin price were to close out the month of September in the green, then it is expected that the fourth quarter of the year will continue the recovery. In this case, the BTC price could end up actually reaching a new all-time high before the year 2024 is over.

Featured image created with Dall.E, chart from Tradingview.com

The Bitcoin price movement has been a point of contention among many crypto analysts, but almost everyone can agree that the way forward is up. One of these is a recent conversation regarding Bitcoin’s price pattern on social media platform X, with legendary trader Peter Brandt eventually providing his expertise to clear up the matter. According to Brandt, Bitcoin’s current price pattern is not that of a bull flag, which signals the continuation of an uptrend, but the crypto remains in a largely bullish sentiment.

Bitcoin Bull Flag Pattern?

Despite the various opinions, most analysts seem to agree that the long-term outlook for Bitcoin remains positive, with many believing that a surge is coming soon. Recently, a Bitcoin trader known as SilkoSpots on social media platform X shared a Bitcoin chart highlighting a bull flag pattern on BTC’s price action.

According to the trader, Bitcoin’s price formation has been that of a bull flag pattern since the beginning of the year. Particularly, the pole of the started in October 2023, and the flag has been in formation since Bitcoin’s all-time high in March 2024. As such, the crypto is only going through an extended period of consolidation, which is typical of a bull flag, before resuming the leg up. 

However, not everyone agrees with this interpretation. Another crypto analyst, ColinTCrypto, raised concerns about the validity of this bull flag pattern. He referenced veteran trader Peter Brandt, who has been a long-standing authority in the field of technical analysis. Brandt’s key critique is that a bull flag cannot take such an extended period to develop.

According to Investopedia, bull flags usually resolve one way or the other in less than three weeks. If the price action drags on for longer, it often transforms into a different pattern, such as a rectangle or triangle. 

Peter Brandt, echoing his previous insights, reaffirmed that a legitimate bull flag pattern cannot extend over such a long period. Nevertheless, Brandt noted that “a bear channel, once violated, could resume a longer-term bull trend.” Consequently, it would seem Brandt also believes Bitcoin is on its way to starting another uptrend.

What’s Next For BTC?

Bitcoin appears to be experiencing a temporary hiatus after a significant rally that saw its price climb 22% from a low of $52,825 on September 6 to $64630 on September 25. According to a chart analysis by Peter Brandt, BTC has largely been in an expanding triangle for the past six months with a series of lower highs and lower lows. 

On a long-term basis, Bitcoin needs to close above the July high of $70,162 in order to complete this pattern and resume a full-blown uptrend. At the time of writing, BTC is trading at $63,780, around 10% away from this price point. 

Featured image created with Dall.E, chart from Tradingview.com

The price of Bitcoin put in another positive performance over the last seven days, looking to end the month and start October on an even stronger footing. Continuing its resurgence over the past few weeks, the premier cryptocurrency climbed as high as $66,000 on Friday, September 27th.

Recent data shows that there might be a growing correlation between the performance of the US stock market and the value of the world’s largest cryptocurrency. The question here is — how could this influence the behavior of investors?

How Did Bitcoin And S&P 500 Perform In September?

In a recent post on the X platform, crypto intelligence firm IntoTheBlock revealed the correlation between the Bitcoin price and the S&P 500, one of the most popular stock market indices, has reached its highest point in more than two years. For clarity, the S&P 500 index tracks the performance of 500 of the largest exchange-listed companies in the United States.

The Bitcoin price registered a surprisingly positive performance in September, a month known to be historically bearish for the flagship cryptocurrency. According to data from CoinGecko, the value of BTC is up by more than 11% in the past month.

Source: IntoTheBlock/X

Meanwhile, the S&P 500 index has undergone a quick and strong recovery, printing a new all-time high after an initial slump at the beginning of the month. Data from TradingView shows that the index is up almost 4% in September. 

The relationship between the stock market and the cryptocurrency market has always been intriguing, as investors look to take advantage of opportunities either market offers. Nevertheless, a strong correlation between these two asset classes is deemed to narrow the diversification opportunities they offer to investors.

As of this writing, Bitcoin price stands around $66,024, reflecting a mere 1.1% increase in the past 24 hours. Meanwhile, the S&P 500 Index continues to hover around 5.8K, with a 0.4% rise in the past day.

Global Liquidity Surges By $1.426 Trillion In A Week

Popular crypto pundit Ali Martinez took to the X platform to share that there has been a notable surge in the volume of capital in the global financial markets. Data provided by Martinez shows that global liquidity jumped by $1.426 trillion in the past week.

Global liquidity surged by $1.426 trillion this week, hitting $131.6 trillion. #Bitcoin and other risk assets are gaining, though this liquidity boost could roll over into October. pic.twitter.com/PtFDjkR7wU

— Ali (@ali_charts) September 27, 2024

Bitcoin and other risk assets have been the major beneficiaries of the rising global liquidity, as their values have gained due to the increased capital influx. Martinez also noted that this liquidity boost could roll over into October.

The price of BTC breaks above $66,000 on the daily timeframe | Source: BTCUSDT chart from TradingView

Featured image from iStock, chart from TradingView