Bitcoin Sees Weekly Gain After a Month of Declines
Bitcoin has finally broken its streak of declines and recorded its first weekly gain since August. Over the past seven days, the pioneer cryptocurrency has risen by nearly 3%. This positive momentum comes after a significant downturn in the past month, where Bitcoin lost 11% of its value. The drop was further exacerbated by a sudden price crash in mid-August that significantly impacted its overall valuation.
Bitcoin Price Reaches Monthly High
Despite the recent volatility, Bitcoin managed to reach a monthly high of $26,750. However, at the time of writing, it has been adjusted to $26,592. This resilience in Bitcoin’s price trajectory is noteworthy considering historical patterns associated with September, which is often referred to as “Rektember” due to frequent dips in Bitcoin’s price. The stability suggests that Bitcoin has established strong support at its current price level, potentially helping it retain most of its gains from earlier this year.
Influence of US Securities and Exchange Commission (SEC)
Throughout 2023, Bitcoin’s price movements have been heavily influenced by speculations surrounding the approval of a Spot Bitcoin ETF by the US Securities and Exchange Commission (SEC). However, there have been no major updates on this front in recent weeks, which could be contributing to Bitcoin’s current stable price behavior.
Tether Supply and Investor Behavior
Santiment, a renowned crypto analytics firm, offers a positive forecast for Bitcoin. It highlights that the supply of Tether’s USDT on crypto exchanges has reached its highest level since March, accounting for 24.1%. This increase aligns with a general decrease in BTC and Ethereum holdings on exchanges, indicating that investors are holding onto their assets rather than trading them.
Potential Uptick in Market Buying Interest
By connecting the rising USDT supply on exchanges with the shrinking BTC and ETH supplies, one can anticipate a potential increase in future market buying interest. Another sign of this emerging trend is Bitcoin’s recent surge in unique addresses, a metric that hasn’t been observed since April. This uptick suggests increased engagement within the Bitcoin ecosystem, further supporting Santiment’s optimistic perspective on the cryptocurrency.
Bullish Divergence from an On-Chain Perspective
According to on-chain analyst Ali Martinez, despite Bitcoin’s price consolidation in recent weeks, the growing network activity represents “one of the most bullish divergences from an on-chain perspective.” This indicates positive developments within the Bitcoin network that could potentially contribute to future price growth.
Hot Take: Bitcoin Breaks Weekly Decline Streak, Showing Resilience and Potential for Growth
Bitcoin’s recent weekly gain of nearly 3% marks a break in its four-week streak of declines. This resilience in price trajectory, along with positive indicators such as the rising supply of Tether’s USDT and increased engagement within the Bitcoin ecosystem, suggests that Bitcoin may be poised for growth. While uncertainties surrounding regulatory approvals persist, the current stability and support at its current price level indicate that Bitcoin has the potential to maintain and build upon its gains from earlier this year. With growing network activity and bullish indicators from on-chain analysis, Bitcoin continues to show promise as a leading cryptocurrency.
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