As August draws to a close, the clock is ticking for Bitcoin‘s next potential rally. Historical trends may not repeat precisely, but several indicators suggest a bullish outlook for Bitcoin. Here are three reasons why Bitcoin could potentially reach $68,000 in September.
What Do Exchange Supplies Indicate?
One compelling factor is the decreasing supply of Bitcoin on exchanges. Currently, there are 2.68 million BTC available, down from over 3 million in January. This 11% reduction is significant, especially considering a 43% price increase in the same period. This decline suggests BTC is being moved to cold wallets, a bullish sign for the market.
Why Are Whales Accumulating?
Data from Santiment highlights that addresses holding between 100 and 1,000 BTC have accumulated 94,700 BTC in the last six weeks. These “whales” are seasoned investors, and their increased holdings in a seemingly adverse environment point to a positive outlook. Demand surged especially when BTC dropped to $50,000.
Key Insights for Investors
– Bitcoin’s supply on exchanges has dropped by 11% since January.
– Whale investors have accumulated 94,700 BTC in recent weeks.
– The BTC price needs to close above $60,300 for an upward breakout.
– Technical indicators suggest a target of $68,000 by September.
– A recovery in spot ETF purchases is crucial for increasing overall demand.
Result
The technical analysis further validates a potential price rally. Bitcoin is currently trading above $60,300, a key level for an upward breakout. The formation target of $68,000 is projected to be reached in September, supported by strengthening support levels around $59,446. If additional buyers enter the market, the bullish trend could be further reinforced.