Key Points
- Bitcoin’s price is showing signs of a potential reversal despite recent volatility.
- Whale investors are steadily increasing their Bitcoin holdings, leading to a decline in supply on centralized exchanges.
Despite the recent drop from $65.6K to about $63.2K, the Bitcoin (BTC) price closed September with a bullish outlook, indicating a possible reversal in the near future. The leading cryptocurrency is aiming to recapture the 200-day Moving Average (MA) as a support level.
Bitcoin’s volatility is predicted to persist in the upcoming weeks, fueled by expectations of a bullish fourth quarter.
Economic Shifts and Market Predictions
The ongoing economic shift, spurred by the recent Fed’s rate cut and the upcoming US 2024 general elections, is expected to boost the bullish crypto outlook.
The Bitcoin price is likely to follow Gold’s price action, which is already in the discovery phase.
According to a well-known crypto analyst known as PlanB, Bitcoin’s price is on track to reach a new all-time high soon after consolidating between $60k and $70K for the past eight months. Historically, Bitcoin’s price tends to perform better in the fourth quarter after closing September with a bullish outlook.
However, renowned analyst Peter Brandt has repeatedly warned traders of a potential sudden Bitcoin selloff if it does not consistently close above the July peak of about $69.9K.
Technical Analysis and Whale Investors
From a technical perspective, the Bitcoin price in the four-hour timeframe has signaled a potential selloff in the upcoming weeks before a macro reversal by the end of this year. If the Bitcoin bears persist in the coming weeks, BTC’s price will likely retrace to the support range between $52k and 54k.
On-chain data analysis provided by Coinglass shows that the supply of Bitcoin on centralized exchanges declined by more than 10K in the past week. This drop to a multi-year low signals increased buying pressure.
The significant reduction of Bitcoin on CEXs is primarily due to the rising demand from the US spot BTC ETFs and other whale investors. Over the past four weeks, the US spot BTC ETFs, led by BlackRock’s IBIT, have accumulated Bitcoins worth more than $1.9 billion.
On Monday, the US spot BTC ETFs registered a net cash inflow of about $61 million, led by IBIT’s $72 million.
Also, individual companies headed by MicroStrategy Inc. have been accumulating more coins recently. Today, Japanese Metaplanet Inc. announced that it had successfully purchased an additional 107.93 Bitcoins, worth more than $6.9 million, thus currently holding about 506.75 BTCs.
It’s worth noting that El Salvador continues to purchase 1 Bitcoin per day to strengthen its crypto portfolio.
