When Bitcoin surrendered its higher price position at the start of September, many expected a drastic fall in price after the asset had built up its stature in August. Now that the industry is nearing the end of September, rather than consolidating a value below $10,000, BTC seems to be comfortably above it.
The last two weeks seemed the most critical as Bitcoin retested support at $9800 a couple of times, but now, market sentiment alongside major technical indicators suggested that the asset was in line to pull ahead towards $12,000.
An incoming reversal on the weekly chart?
The weekly chart of Bitcoin attested the rigid recovery from $98,00 over the past few weeks. After the first major weekly drop in September, the asset steadied itself but now, the Stochastic RSI is suggestive that Bitcoin is ready to under another bullish reversal in the weekly time frame.
As identified in the chart, the blue line is currently at an over-sold section, right under the signal line. While the crossover has taken place yet, the price movement upwards would possibly take shape when the blue line has completed its turnover with the signal line.
Bitcoin Whales are accumulating higher
Notoriously known for exhibiting high-volume sell-offs during a bearish period, the BTC whales have reacted the opposite way this term.
According to data from Whalemap, a lot of accumulation has taken place from the Whale’s side in September and the larget bubble in the chart above represents the largest stockpile.
Breaking down the numbers, close to 150,000 BTC worth between $10,400 and $10,700 was collected between 25th September and now. The price has been reactive to such collection, indicating a minor uptick.
Bitcoin Market Fundamentals show no sign of weakness
According to a popular trader “Byzantine General”, the hash ribbon indicator has indicated two consecutive buy signals in the last one week. He said,
“These signals happen during the first recovery after miner capitulation. The bitcoin production cost is currently green. Simply put, this means that miners are potentially taking losses. Maybe it’s not very intuitive, but historically speaking these are amazing buy opportunities.”
Now, the only argument left to discuss was whether Bitcoin can fend off another short-term sell-off. The 1-hour chart of BTC currently looks over-bought and there were signs that a drop down to $10,400 as possible. In spite of these short-term concerns, the long-term narrative still seems largely positive as September’s speed bumps did not off-tracked Bitcoin’s bull rally.