The end of August was tough for Bitcoin [BTC] while its price plummeted. However, September bought better days as the cryptocurrency only experienced a slight dip in its seven-day performance.
This can be seen as a sign of an increase in the near future. At the time of writing, BTC was trading just below the $ 20,000 mark at $ 19,950.41 with a market cap of $ 381,836,195,229.
Although BTC’s one-month chart was mostly painted red, Glassnode’s investor confidence in the coin did not appear to wane. This can also be considered positive for the currency.
With so many events happening, how soon can we expect the bulls to ease and lead the next BTC bullish rally?
What to Expect?
Recently, the number of addresses holding 1+ bitcoin just hit an ATH of 900,232, indicating that investors are expecting a price hike in the coming days.
The previous ATH of 900,198 was observed on 01 September 2022
View metric: https://t.co/s7tx1xxyz3 pic.twitter.com/uQBq8ygpyA
– glassnode alerts (@glassnodealerts) September 3, 2022
Although opinions differ, several analysts have spoken about their assessment of the situation. For example, TAnalyst, a popular Twitter handle, recently posted a chart that showed something interesting.
Also, as per the chart, a bullish wedge pattern formed, indicating the possibility of an upcoming Bitcoin bullish rally in the days ahead.
#BITCOIN READY FOR A MASSIVE BULL RACE.
A one-year descending wedge implies a strong uptrend. pic.twitter.com/Jo4YmmykdZ
– Analyst (@AurelienOhayon) September 2, 2022
The total outflow of bitcoin also supported TAnalyst’s results and the figure rose slightly, which is a bullish sign.
In addition, Bitcoin’s risk reserve ratio has also significantly decreased. This could indicate a market low and create an opportunity for investors to accumulate as the risk / reward ratio increases.
However, on the other hand, some analysts claim otherwise. In her assessment, CryptoQuant analyst and author Maartunn pointed out in her own assessment that the bears may still have an edge on the market.
According to the data present, an episode of miner transferring Bitcoin to exchanges was followed by a drop in prices, as a similar trend was observed in May and June.
Also, as 4,400 BTC was transferred from miners to exchanges recently on Sept. 2, history could repeat itself. There is a possibility that the price of BTC will plummet in the next few days.
BTC’s four-hour chart painted a vague picture of its price action as many indicators showed different readings. The EMA tape indicated a possible bull run as the gap between the 20-day and 55-day EMA was narrowed, creating an opportunity for a bullish crossover. In addition, an ascending triangle formed, which further increased the chances of an increase.
However, the Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD) told a different story. The former showed a bearish trend and the latter showed a bearish crossover. This minimizes the chances of a short-term northbound breakout.