Originally published on: August 22, 2024
Introduction:
Bitcoin has shown a remarkable rebound, with its price surging over 22% from its recent low. Analysts are optimistic about a potential rally in the coming weeks, backed by onchain and technical indicators. Let’s dive into the reasons why the Bitcoin price could reach $68K in September.
Supply on Exchanges Declining:
Onchain data reveals a significant decrease in Bitcoin supply held on centralized exchanges. This trend suggests that traders are opting to hold onto BTC rather than selling it for other assets or fiat currencies. With diminishing supply on exchanges, the demand for Bitcoin remains strong, potentially fueling a continued bull run.
Institutional Interest in Spot Bitcoin ETFs:
Institutional investors are showing sustained interest in spot Bitcoin exchange-traded funds (ETFs), with positive flows recorded in recent trading days. However, there has been a decline in inflows into these ETFs, emphasizing the need for robust institutional demand to drive Bitcoin to new price highs. Strong institutional support is crucial for a sustained price rally.
Accumulation by Bitcoin Whales:
Large stakeholders, commonly known as Bitcoin whales, have been accumulating significant amounts of BTC over the past few weeks. This accumulation by addresses holding between 100 and 1,000 BTC highlights the confidence of key investors in Bitcoin’s potential for further appreciation. Their accumulation during price dips signals a bullish sentiment and suggests a positive outlook for Bitcoin’s price trajectory.
Technical Analysis and Price Projection:
Bitcoin’s price is currently consolidating within a bullish pennant pattern, indicating a potential breakout to the upside. Trading above key resistance levels and the 200-day exponential moving average reaffirms the bullish sentiment. The upward breakout target is estimated around $68,000, representing a substantial gain from the current levels.
Support from Onchain Data and Investor Sentiment:
Data from various onchain metrics and investor sentiment indicators point towards continued bullish momentum for Bitcoin. Increased buying pressure from key demand zones could further drive the price higher in the coming weeks. The positive outlook is supported by a combination of technical analysis and fundamental factors.
Conclusion:
The combination of decreasing supply on exchanges, institutional interest in Bitcoin ETFs, accumulation by whales, and positive technical signals sets a favorable stage for Bitcoin’s price to potentially reach $68K in September. Investors should conduct their own research and exercise caution in their trading decisions as the market involves inherent risks.
