Based on historical chart patterns, Bitcoin could see a breakout in September, with $86,000 likely to be the next major price target.
Bitcoin price to breakout in September
According to popular analyst Rekt Capital, the price is on track for an imminent breakout in September, based on chart patterns following previous halvings. The analyst wrote in an August 18 post to his 493,000 followers: “Bitcoin tends to enter the parabolic phase of the cycle approximately ~160 days after the halving. If history repeats itself, Bitcoin could be just over a month away from a breakout. That’s late September.”
The macroeconomic outlook is also bullish. Specifically, Bitcoin could see a breakout due to the growth of the global M2 money supply, said Jamie Coutts, chief crypto analyst at Real Vision.
Coutts wrote in his August 13 post:
“Over the past decade, Bitcoin has had a tendency to bottom a few months before global M2 bottoms. It then tears apart, pulling far ahead in liquidity, and correcting mid-cycle.
The analyst added that growing global liquidity from the M2 money supply, combined with spot Bitcoin exchange-traded funds (ETFs), constitutes a “perfect setup” for Bitcoin.
Inflows into bitcoin ETFs may also come from funds invested in bitcoin ETFs, which turned positive for two consecutive days last week, with net inflows of $35.9 million on August 16, according to data from Farside Investors.
Institutional Bitcoin ETF adoption grew by more than 27% last quarter, with 262 new companies investing in spot Bitcoin ETFs.
"Megaphone" hints at $86,000
According to popular crypto analyst Titan of Crypto, if Bitcoin manages to break out in September, the next major price target for Bitcoin could be around $86,000.
The analyst wrote in an August 18 post on X:
“Bitcoin intermediate target: $86,000. Would you bet on this megaphone pattern playing out?
The Megaphone technical chart pattern consists of at least two higher highs and two lower lows. It occurs when the market is highly volatile and marks a macro top or macro bottom.
However, the failure of Bitcoin price to close above its current downtrend on a daily basis could mean lower lows in the short term, with Rekt Capital writing:
“The reality is that Bitcoin will remain in a downtrend until it breaks. But Bitcoin is just one daily close above the downtrend and is one move away from reversing.
These “lower lows” could mean a retest of the $54,000 and $50,000 support levels before September.
Meanwhile, Bitcoin faces significant resistance at $59,500. A potential breakout above this level would liquidate more than $800 million worth of accumulated leveraged short positions across all exchanges, according to Coinglass data.
If Bitcoin rebounds above $59,900, short-term Bitcoin liquidations will exceed $1 billion.
