Despite the hype at the start of the year after the launch of the spot ETFs, investors appear to have stepped back, and Bitcoin is trading sideways.
Historical patterns indicate an incoming bullish phase for Bitcoin in the fourth quarter.
The cryptocurrency must establish a new "higher high" to confirm its uptrend.
The upcoming US presidential election could introduce market volatility to the mix.
September is historically a challenging month for Bitcoin, and all eyes remain fixed on its performance.
According to long-time Bitcoin advocate Anthony Pompliano, big things are coming for Bitcoin.
During a recent interview with CNBC, the Bitcoin investor noted that BTC has been trading within a narrow range over the summer;
A period he describes as "sideways summer."
This sluggishness in the cryptocurrency's price action follows the massive hype from the start of the year when Bitcoin surged massively after the approval of the 11 ETFs in the US.
According to “Pomp”, this hype might have faded a little, and many retail and institutional investors have taken a step back.
Bitcoin has been trading sideways for a while now, especially after hitting its all-time high at the start of the year.
However, Pompliano maintains optimism about the cryptocurrency's price action in the coming months despite the crab walk.
Speaking to CNBC, he pointed towards historical patterns, noting that the third quarter of years after halvings and the fourth typically mark the beginning of bullish phases.
Therefore, if this trend continues, the end of the year might be a massively bullish one for Bitcoin.
As we move into the year, Pompliano believes that Bitcoin will begin to "pick up" and continue towards new highs.
While Pompliano has remained optimistic about the flagship cryptocurrency, other analysts believe that Bitcoin needs a "trigger" of sorts.
One of the major concerns about the cryptocurrency, at this point, is whether it can continue its bullish momentum after recently dipping below $58,000 and then recovering soon after.
In a recent analysis video, market trader Matthew Hyland noted that Bitcoin needs to register a new "higher high" on the charts to confirm that it is still in an uptrend.
According to the analyst, Bitcoin needs to maintain its standing above $56,000 to avoid breaking its current trend.
If Bitcoin crashed below this level, for example, it would signal a trend reversal and, therefore, a lower low.
Bitcoin would inevitably spiral downwards if this happened as the current uptrend ends.
The upcoming US presidential election is set to introduce massive volatility to the market before and around 4 November.
Hyland predicts that September might present more "sideways action" for Bitcoin, considering its reputation for being one of the worst months for Bitcoin.
According to Coinglass data, in the decade between 2013 and 2023, Bitcoin has only been green three times, with an average monthly loss of more than -4.5%.
Bitcoin’s monthly returns
Analysts like Jelle still believe that Bitcoin is headed for a six-figure target by the end of the year.
According to a recent tweet, the analyst says that the cryptocurrency’s “multi-year cup & handle pattern” has a 6-figure target that we might hit before the end of the year.
This means that at least Bitcoin is set to hit the $100,000 mark by the end of the year.
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