At the end of August, things got worse on Bitcoin [BTC] Because the price has gone down. However, September did buy some better days as the crypto recorded a slight dip in its performance for seven days.
This can be seen as a sign of a recovery in the near future. At the time of writing, BTC is trading just under $20,000 at $19,950.41 with a market capitalization of $381,836,195,229.
Although the one-month BTC chart was mostly painted red, the confidence of Glassnode investors in the coin does not appear to be waning. This can also be considered positive for the currency.
With so many events happening, when soon can we expect the bulls to squeeze in and drive the next bullish rally for Bitcoin?
What can you expect?
Recently, the number of addresses containing 1+ bitcoins reached an ATH of 900232, which indicates that investors are expecting a price increase in the coming days.
The previous ATH of 900198 was observed on September 1, 2022
View stats: https://t.co/s7tx1xxyz3 pic.twitter.com/uQBq8ygpyA
– glassnode alerts (glassnodealerts) September 3, 2022
Although opinions differ, many analysts spoke about their assessment of the situation. For example, Tanalyst, a popular therapist on Twitter, recently posted a chart that showed something interesting.
Also, according to the chart, a bullish wedge pattern has been formed, which indicates the possibility of an upcoming bullish rally for Bitcoin in the coming days.
# bitcoin Ready to run a gigantic bull.
A one-year falling wedge indicates a subsequent strong uptrend. pic.twitter.com/Jo4YmmykdZ
– Tanalyst (@AurelienOhayon) September 2, 2022
The total exchange flow of Bitcoin also supported the results of Tanalyst, as the number rose slightly, which is a bullish sign.
In addition, Bitcoin’s reserve risk ratio has also significantly decreased. This may indicate a market bottom while creating an opportunity for investors to accumulate while increasing the reward risk.
But on the other hand, some analysts say the opposite. In his assessment, Martin, an analyst and writer at CryptoQuant, noted in his book evaluation Bears may still have an advantage in the market.
According to current information, a cycle of miners moving bitcoins to exchanges was followed by a drop in prices, with a similar trend seen in May and June.
Also, since 4,400 BTC were transferred recently on September 2nd from miners to exchanges, history may repeat itself. There is a possibility that the bitcoin price will collapse in the coming days.
BTC’s four-hour chart painted an ambiguous picture of price action as several indicators showed different readings. The EMA bar indicated the potential for an uptrend as the gap between the 20-day and 55-day moving average narrowed, creating an opportunity for a bullish crossover. In addition, an ascending triangle was formed, which increased the chances of a rally.
However, the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) tell a different story. The former recorded a downtrend and the latter showed a bearish cross. This reduces the risk of explosions to the north in the short term.