Bitcoin [BTC] has experienced significant volatility recently, reaching a high of $64,000 before quickly falling below $60,000. Despite this rollercoaster ride, institutional investors appear to be showing increased interest in stockpiling Bitcoin, raising the question: Will this accumulation help BTC turn bullish in September?
Over the past month, Bitcoin underwent a 9% price correction, currently trading at $58,184.19 with a market capitalization exceeding $1.13 trillion. Vivek, a well-known crypto influencer, highlighted an intriguing trend: the number of BTC balances in new addresses holding more than 1,000 BTC has risen sharply in recent months. This suggests that institutional investors are confident in Bitcoin’s long-term potential and are expecting its price to rise in the near future.
Analyzing Bitcoin’s September Prospects
Recent data from CryptoQuant shows a significant drop in BTC exchange reserves on August 27, indicating strong buying pressure, which typically precedes price increases. However, not all signals point to an immediate bullish trend.
For example, the Coinbase premium, a key indicator of U.S. investor sentiment, turned green, suggesting a strong selling sentiment. Additionally, the Funds premium, which includes major investors like Grayscale, was in the red, indicating weaker buying sentiment among institutional investors.
Moreover, data from Glassnode reveals that Bitcoin’s accumulation trend score currently stands at 0.35. This score measures the size and activity of entities accumulating Bitcoin on-chain. A score closer to 0 indicates lower accumulation activity, while a score closer to 1 suggests increased buying pressure. The current score suggests that buying pressure is waning.
Technical Indicators Signal Caution
Several technical indicators reinforce the cautious outlook for Bitcoin in September. The MACD (Moving Average Convergence Divergence) displayed a bearish crossover, while both the Chaikin Money Flow (CMF) and the Relative Strength Index (RSI) registered downward trends. These signals suggest that investors may need to be patient, as a bullish turn for Bitcoin may not materialize immediately in September.
Conclusion
While institutional interest in Bitcoin is growing, with significant accumulation by large holders, the broader market sentiment and technical indicators suggest that Bitcoin may face more challenges before turning bullish. Investors should keep an eye on key indicators and market trends as September unfolds, but it may take time for Bitcoin to regain its upward momentum.
