At the time of writing, Bitcoin is trading at $57,980.91, a 0.30% drop in the last 24 hours and 8% in the last 7 days. The market cap stands at $1.14 trillion. However, the 24-hour trading volume has seen a surge of 76.95%, reaching $27.6 billion. Despite these numbers, Bitcoin remains trapped in a consolidation phase that began in March, a similar pattern from last year. The big question is: Will September be the month that breaks the cycle and pushes Bitcoin to new heights?
One of the most notable trends in recent weeks has been the increase in Bitcoin whales. In just one month, there has been a net gain of +283 wallets holding at least 100 BTC, bringing the total to 16,120 wallets, a 17-month high. This increase in whale activity often signals strong market confidence and could be a precursor to a significant price movement.
Despite the growing number of whales, market sentiment remains cautious. Capital flows for major assets like Bitcoin have fallen below those for stablecoins, indicating that investors are seeking safety amid uncertainty.
Additionally, Bitcoin miners sold 2,655 BTC over the weekend, worth approximately $154 million, further contributing to the bearish sentiment according to Ali Martinez.
BTC technicals provide a mixed outlook. The current price level of $57,980.91 is crucial, acting as a support level that could determine the crypto’s short-term direction. However, in the lower timeframes, Bitcoin has broken through the $57,000 support, and the next critical level lies at $56,000. If this support fails to hold, Bitcoin could drop further to $53,000, where it may find support at the base of a larger bullish flag pattern.
The daily MACD indicator is currently bearish, with the MACD line positioned below the signal line. This suggests that selling pressure may continue in the near term. The RSI also stands at 42, indicating ongoing selling pressure, but it also leaves room for a potential rebound if buying interest picks up.
Despite the bearish indicators, the weekly chart presents a more optimistic picture. Both the Weekly RSI and MACD show bullish divergence, which could signal a forthcoming reversal. Additionally, a giant inverse head and shoulders pattern appears to be forming as analyzed in our previous report, which, if confirmed, could push Bitcoin above $100K.
Closely monitor the $56K support level in the coming days. A break below this level could trigger a further decline, while a successful defense could push for a bullish breakout. Additionally, the growing number of Bitcoin whales and the multiple chart patterns and key metrics are key factors that could drive the next major price movement.
Will Bitcoin follow last year’s pattern and begin its ascent towards $100K or will the current bearish trend prevail? Only time will tell, but the technicals and market activity suggest that a shift is incoming.