Bitcoin has been on an unexpected journey, defying market norms and historical trends in September. Currently, BTC is being traded at $60,164, showing a 3.94% rise in daily trading and a 10.96% increase over the week.
Prior to this recent surge, Bitcoin had been on a downward path, remaining below the $60k mark since August 29. Despite the uptick, the cryptocurrency is still more than 18% lower than its all-time high of $73,937 in March.
The surprising upward movement of Bitcoin in September has caught the attention of many analysts. Ali Martinez, a prominent analyst, believes that Bitcoin will reach $64,300, citing the high number of active addresses as a key indicator.
Market Sentiment Overview
Martinez’s analysis pointed out that currently, there are 1.52 million addresses holding over 770,000 BTC in the price range of $59,885 to $61,625.
These price levels indicate a resistance zone, suggesting that many holders might opt to sell and secure profits within this range. When a significant number of addresses hold assets at specific prices, these levels can become barriers to further price increases due to potential sell-offs. However, Martinez predicts that if Bitcoin surpasses the $61,625 resistance level, it will likely experience additional gains, breaking through the selling pressure and paving the way for further upward movement toward $64,300.
If Bitcoin fails to breach this resistance zone and stays below $61,625, a potential pullback could occur, leading to a short-term decline to around $57,235 before a new attempt at moving higher.
Technical Analysis Insights
After hitting lower lows on September 7, Bitcoin has shown a notable upward trend. Despite the possible selling pressure from the 1.52 million addresses highlighted by Martinez, current market conditions seem to support further price appreciation.
The decrease in the exchange whale ratio from 0.7 to 0.5 indicates that large holders are not planning to sell in the near future, suggesting a bullish long-term outlook. Moreover, negative exchange netflows since September 9 imply that investors are withdrawing their funds from exchanges to hold them in cold storage, signaling a reluctance to sell in the short term.
Furthermore, the declining NVM ratio for Bitcoin reflects strengthening network fundamentals, reinforcing the positive market sentiment. This suggests a potential accumulation phase in anticipation of a price rally.
Given the favorable market conditions, Bitcoin may strive to overcome the $64,300 resistance level if these factors persist.