Bitcoin has surprised both market observers and historical trends by showing positive momentum in September. Presently, BTC is valued at $60,164, marking a 3.94% increase in daily trading and a 10.96% gain over the past week.
Despite starting the month on a downward trend, with Bitcoin trading below $60,000 since late August, the recent uptick still leaves BTC over 18% lower than its all-time high of $73,937 reached in March.
This unexpected turn of events in September has sparked discussions among analysts. Ali Martinez, a prominent analyst, predicts that Bitcoin could reach $64,300 based on the activity of active addresses.
Analysis of Market Sentiment
Martinez pointed out that there are currently 1.52 million addresses holding more than 770,000 BTC in the price range of $59,885 to $61,625.
Within this range lies a resistance zone, where many holders may be inclined to sell and take profits. When a significant number of addresses hold assets at particular price levels, these levels become resistance points. This selling behavior can create downward pressure and hinder price appreciation.
If Bitcoin manages to surpass the $61,625 resistance level, it is likely to experience further growth. Breaking through this resistance would absorb selling pressure, opening the path for BTC to reach $64,300.
Conversely, failure to breach this resistance zone and remaining below $61,625 could lead to a pullback. In such a scenario, Bitcoin might retrace to $57,235 before attempting another upward movement.
Interpreting the Charts
After hitting lower lows on 7 September, Bitcoin has shown a strong upwards trend. Despite the potential sell-off from the 1.52 million highlighted addresses, prevailing market conditions could support further price gains for BTC.
The decline in the exchange whale ratio, from 0.7 to 0.5, indicates that major holders are not planning immediate sales. This suggests a positive long-term outlook by whales who anticipate price appreciation.
Bitcoin’s negative exchange netflows since 9 September imply that investors are moving assets to cold wallets, signaling a reluctance to sell in the near future. By reducing the available supply on exchanges, this behavior supports a bullish move.
Furthermore, the decreasing NVM ratio of Bitcoin signifies a strengthening network, reinforcing positive market sentiment.
While the network fundamentals improve, the market may not have fully reflected this growth, potentially leading to accumulation in anticipation of a price surge.
Given the optimistic market conditions, Bitcoin is poised to challenge the $64,300 resistance level in the near term.