Bitcoin is set for a breakout in October, as analysts are eying one last major correction ahead of the parabolic phase of the bull cycle.
Final BTC price dip before breakout?
The Bitcoin (BTC) bull run could see one more significant dip ahead of the next leg up, based on technical chart formations, according to popular crypto analyst Mags.
The analyst wrote in a Sept. 9 X post:
âBitcoin â Last dip before up only.â
Bitcoin dip before breakout. Source: Mags
Bitcoin price has been forming higher highs and higher lows since February 2024. While this shows a long-term uptrend, the analystâs chart patterns indicate another potential correction toward the $51,000 trendline before the next leg up.
Furthermore, Bitcoin Chicago Mercantile Exchange (CME) gap analysis points to a potential correction to $54,000, based on the current BTC CME gap between $54,000 and $54,450.
Bitcoin CME gap on the 4-hour chart. Source: TradingView
CME gap analysis has become a popular way to evaluate potential retest areas for Bitcoin during a momentum breakout. When these gaps are formed, traders often mark them as potential support and resistance ranges before trend continuation or reversal.Â
Other analysts also expecting a dip to end the current Bitcoin consolidation phase include popular analyst Titan of Crypto, who wrote in a Sept. 10 X post:
âItâs likely time for BTC to wrap up this consolidation phase. History doesnât always repeat itself, but it often rhymes.â
BTC/USD, 1-day chart. end of consolidation. Source: Titan of Crypto
Why is October ripe for Bitcoin to break out?
Bitcoinâs final bullish cycle could start as soon as October, according to pseudonymous analyst Titan of Crypto.
The analyst wrote in a Sept. 4 X post:
âOctober could be the month #BTC finally starts its final cycle move.â
Bitcoin cycles & halvings. Source: Titan of Crypto
Investors are expecting an October breakout based on Bitcoinâs average historical returns, which makes October the second-best month for Bitcoin price action.
Bitcoin monthly returns percentage. Source: CoinGlass
Bitcoin has averaged 22.9% returns in October, while November remains the best month, with average historical returns of 46.81%, according to CoinGlass data.
Previous halving cycles also point to an October breakout, which lasted up to three consecutive months during previous halving years, wrote Rekt Capital, in a Sept. 8 X post:
âIt makes most sense to compare 2024 with previous Halving years. In the previous Halving years (2016 & 2020), Bitcoin enjoyed three straight months of upside across October, November and Decemberâ
Bitcoin halving year analysis. Source: Rekt Capital
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
