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Bitcoin’s September predictions – Will institutions come to BTC’s rescue?

September 1, 2024
in Bitcoin
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Bitcoin’s September predictions – Will institutions come to BTC’s rescue?
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  • Selling sentiment has been dominant among U.S investors
  • Market indicators hinted at a sustained price drop in the short term

Bitcoin [BTC] has been on a rollercoaster ride for a couple of weeks now. This was best evidenced by BTC successfully crossing $64k, before dropping under $60k within just a few days.

While the coin’s volatility has remained high, institutional investors are considering stockpiling the cryptocurrency. Will this help BTC turn bullish in September? 

Are institutional investors accumulating Bitcoin?

Bitcoin witnessed a +9% price correction last month. At the time of writing, it was trading at $58,184.19 with a market capitalization of over $1.13 trillion.

In the meantime, Vivek, a popular crypto influencer, recently shared a tweet highlighting an interesting development. According to his analysis, the number of BTC balances on new addresses with more than 1k BTC increased sharply over the last several months. This clearly suggested that institutional investors have been showing confidence in BTC. It also means they expect the king coin’s price to surge in the coming weeks or months.

Since a new month is already upon us, AMBCrypto took a closer look at Bitcoin’s state. This, in an attempt to see whether institutional investors’ confidence in BTC would pay off this month.

Source: X

How BTC’s September might look like

AMBCrypto’s analysis of CryptoQuant’s data revealed that BTC’s exchange reserves dropped sharply on 27 August. This clearly suggested that buying pressure on the coin was high, which often results in price hikes.

Bitcoin's exchange reserve dropped

Source: CryptoQuant

However, not everything seemed to be in the coin’s favor. For example, the Coinbase premium turned green, meaning that selling sentiment was strong among U.S investors. On top of that, the Funds premium was also red. This indicated that investors in funds and trusts, including Grayscale, have relatively weak buying sentiment.

See also  Kraken exec explains Bitcoin's looming 'tipping point'

Apart from this, AMBCrypto’s assessment of Glassnode’s data revealed that at press time, Bitcoin’s accumulation trend score had a value of 0.35. For starters, the accumulation trend score is an indicator that reflects the relative size of entities that are actively accumulating coins on-chain in terms of their BTC holdings.

A number closer to 0 indicates the reluctance of investors to accumulate. On the other hand, a value closer to 1 hints at a hike in buying pressure. Since at press time the value was close to 0, it seemed that buying pressure was diminishing. 

BTC's accumulation trend score

Source: Glassnode


Read Bitcoin’s [BTC] Price Prediction 2024–2025  


Finally, AMBCrypto analyzed BTC’s daily chart to better understand what to expect from it in September.

The technical indicator MACD displayed a bearish crossover. Both its Chaikin Money Flow (CMF) and Relative Strength Index (RSI) registered downticks too. Together, these indicators suggested that investors might have to wait longer in September to see Bitcoin turn bullish. 

Source: TradingView

Next: AAVE breaks 800-day range – What does it mean, and what’s next now?

READ ALSO

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  • Selling sentiment has been dominant among U.S investors
  • Market indicators hinted at a sustained price drop in the short term

Bitcoin [BTC] has been on a rollercoaster ride for a couple of weeks now. This was best evidenced by BTC successfully crossing $64k, before dropping under $60k within just a few days.

While the coin’s volatility has remained high, institutional investors are considering stockpiling the cryptocurrency. Will this help BTC turn bullish in September? 

See also  Bitcoin’s Hashrate Reaches 618 EH/s, Establishing a New 7-Day SMA Record in 2024

Are institutional investors accumulating Bitcoin?

Bitcoin witnessed a +9% price correction last month. At the time of writing, it was trading at $58,184.19 with a market capitalization of over $1.13 trillion.

In the meantime, Vivek, a popular crypto influencer, recently shared a tweet highlighting an interesting development. According to his analysis, the number of BTC balances on new addresses with more than 1k BTC increased sharply over the last several months. This clearly suggested that institutional investors have been showing confidence in BTC. It also means they expect the king coin’s price to surge in the coming weeks or months.

Since a new month is already upon us, AMBCrypto took a closer look at Bitcoin’s state. This, in an attempt to see whether institutional investors’ confidence in BTC would pay off this month.

Source: X

How BTC’s September might look like

AMBCrypto’s analysis of CryptoQuant’s data revealed that BTC’s exchange reserves dropped sharply on 27 August. This clearly suggested that buying pressure on the coin was high, which often results in price hikes.

Bitcoin's exchange reserve dropped

Source: CryptoQuant

However, not everything seemed to be in the coin’s favor. For example, the Coinbase premium turned green, meaning that selling sentiment was strong among U.S investors. On top of that, the Funds premium was also red. This indicated that investors in funds and trusts, including Grayscale, have relatively weak buying sentiment.

Apart from this, AMBCrypto’s assessment of Glassnode’s data revealed that at press time, Bitcoin’s accumulation trend score had a value of 0.35. For starters, the accumulation trend score is an indicator that reflects the relative size of entities that are actively accumulating coins on-chain in terms of their BTC holdings.

See also  'China's going to have it' - Donald Trump crypto stance, finally explained

A number closer to 0 indicates the reluctance of investors to accumulate. On the other hand, a value closer to 1 hints at a hike in buying pressure. Since at press time the value was close to 0, it seemed that buying pressure was diminishing. 

BTC's accumulation trend score

Source: Glassnode


Read Bitcoin’s [BTC] Price Prediction 2024–2025  


Finally, AMBCrypto analyzed BTC’s daily chart to better understand what to expect from it in September.

The technical indicator MACD displayed a bearish crossover. Both its Chaikin Money Flow (CMF) and Relative Strength Index (RSI) registered downticks too. Together, these indicators suggested that investors might have to wait longer in September to see Bitcoin turn bullish. 

Source: TradingView

Next: AAVE breaks 800-day range – What does it mean, and what’s next now?
Tags: BitcoinsBTCsInstitutionspredictionsRescueSeptember

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