September has always been the worst month for Bitcoin historically. Bitcoin (BTC) price struggles to reach the 200-WMA at $23K as it continues to dive below $20,000. However, the technical and on-chain data suggest the Bitcoin price should now rebound again to the 200-WMA.
Bitcoin (BTC) Price Awaits Massive Price Rally
The volatility in the crypto market due to the Federal Reserve’s hawkish stance on rate hikes has kept the Bitcoin (BTC) price at bay. Interestingly, the price decline caused more people to take the “buy-the-dip” opportunity.
As mentioned in the previous report, if the number of new daily addresses rises above 415,000 it will confirm a Bitcoin bottom and bulls will take over. According to Glassnode data, new daily addresses on the BTC network have jumped over 417,354. Thus, the outlook is bullish and the Bitcoin price should start rising again.
Crypto analyst Ali Martinez in a tweet reveals that the BTC movement in the four-hour timeframe indicates the Bitcoin price rebounds each time it reaches the rising RSI trendline.
“The question is whether, this time around, the trendline will hold again and help BTC regain some of the losses incurred.”
Meanwhile, Bitcoin price shows no signs of support from miners and whales as buying pressure remains weak. In fact, addresses holding 1000 BTC or more continue to decline. Recently, several dormant Bitcoin whales have sold their holdings. On the other hand, miners’ reserves have declined continuously this year. As per data by CryptoQuant, miners’ reserves are currently 1.86 million.
However, almost 73.25% of all accounts with a BTC open position are going long on Binance Futures. It indicates the traders are buying at current levels.
Major Triggers of Upside Movement
The Bitcoin (BTC) price trend will mostly depend on the Fed rate hike on September 21. While the 100 bps rate hike is on the table, Wall Street banks such as Goldman Sachs believe the Fed will go with a 75 bps rate hike.
A continuous fall in the US dollar index since September 7 spurred bullish sentiment in the market to push the BTC price over $22,000. However, the US dollar index has again jumped over 110. A decline in the index will confirm a bullish move.
Institutional buying has increased at the current level. In fact, MicroStrategy buying more bitcoins is the major trigger here to push the price to the 200-WMA.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
