Bitcoin's unconventionally bullish September and key levels towards a historic high

September is considered a bearish month in the cryptocurrency market. But, September started very well this year. The main cryptocurrency has consolidated above $ 50,000 per coin, which leaves a chance for continued growth.

The Sunday afternoon candle broke through the upper limit of the side range of 46299.48 - 50513.53 and reached the next resistance zone of 52000.18 - 52929.55 today, which has not yet been broken through.

Santiment's analysts note that one of the triggers of this price impulse could be an increase in interest in altcoins. Over the weekend, Ethereum rose to $ 4,000, while Litecoin soared to $ 230.

If we compare the first and second cryptocurrencies, Bitcoin has added about 121% since the beginning of the year, while Ethereum has grown by 312%.

The second reason for the continued growth of bitcoin is probably the decrease in the activity of short positions of crypto-whales. According to CryptoQuant, cryptocurrency whales on the Bitfinex exchange currently do not open a large number of short positions. The growth of shorts was observed during the period when bitcoin grew from $ 33,000 to $ 40,000. But now, when the main cryptocurrency has risen above $ 51,000, the number of downside transactions has remained small.

Meanwhile, Mike McGlone, senior commodities strategist at Bloomberg, released a September cryptocurrency outlook report. He stated that crypto companies are managing to keep the market under control. At the same time, he sees the target for Bitcoin as $ 100,000 and revised the target for the second cryptocurrency from $ 4,000 to $ 5,000.

McGlone believes that the cryptocurrency has already passed the period of hype and speculation. Now the market is growing because of the " revolution in money and finance, which occurs in the first days of the opening of prices."

Assessing the prospects of the first and second cryptocurrencies, McGlone calls Bitcoin a "store of value" and Ethereum "the building block of DeFi."

The strategist calls Bitcoin lagging behind Ethereum, so the main cryptocurrency is likely to be used as a global reserve asset. In his opinion, it is "no one's responsibility or a project", which probably means that it cannot be manipulated or destroyed due to the widespread use of the network.

Therefore, McGlone predicts that Bitcoin, along with the US dollar, can become the world's reserve digital asset.

In turn, Ethereum has a different perspective. The Bloomberg analyst refers to the recent network update, which helps to reduce the supply, thereby supporting the growth of the second cryptocurrency. Also, the growing popularity of NFC, which mainly uses the Ethereum blockchain, and DeFi will play into the hands of Ethereum.

As we can see, the future looks optimistic. In this case, the local targets will be as follows:

  • The breakdown of the resistance zone 52000.18 - 529.55 and consolidation above it will allow BTC/USD to continue to the historical high.
  • The nearest stop could happen at $ 55,000 per coin. There, the level of 60,000 is within reach.

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The material has been provided by InstaForex Company - www.instaforex.com

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