- Bitcoin was making gains of almost 11% on the weekly charts at the time of writing
- Analysts are looking at $64,300 after a possible breakout of $61,625
Bitcoin [BTC] has defied market expectations and historical patterns to turn September blue. At the time of writing, BTC was trading as high as $60,164. This meant an increase of 3.94% on the daily charts and a gain of 10.96% on the weekly charts.
However, prior to these gains, BTC was on a downward trajectory, with the crypto remaining below $60,000 since August 29. And yet, despite this rebound, BTC remains more than 18% below its ATH of $73,937 from March.
Needless to say, Bitcoin defying history to see green in September has got many analysts talking. Ali Martinez is one of them, with the popular analyst now claiming that BTC will reach $64,300, citing active addresses.
What does the market sentiment say?
In his analysis states Martinez listed the current 1.52 million addresses holding over 770,000 BTC at a range between $59,885 and $61,625.
Source:
In context, this range represents a resistance zone, implying that this is the area where many holders might choose to sell and take profits. When a large number of addresses hold assets at a certain price level, these levels turn into resistances. This is because holders may decide to sell when the price approaches the range in which they bought. Such market behavior can result in selling pressure, which slows upward momentum.
However, according to the analyst, the crypto will post further gains if it surpasses the USD 61,625 resistance level. This would indicate that any selling pressure at this level would be absorbed, paving the way for further price gains. In this case, the next level will be $64,300.
Therefore, if the price fails to break above this resistance zone and remains below $61,625, it could trigger a pullback. This short-term downward move could see BTC return to $57,235 before attempting another move north.
What do the graphs say?
Since closing at a lower low on September 7, BTC has noticed a strong rebound. Although the 1.52 million addresses highlighted by Martinez could decide to sell, prevailing market conditions could allow BTC to make more gains on the price charts.
Source: Cryptoquant
For example, the trade whale ratio fell from 0.7 to 0.5, indicating that large holders are not preparing to sell in the near term.
This decline means whales are keeping their assets in private wallets. Such market behavior is a sign of a bullish long-term outlook for whales, especially as they expect further price increases.
Source: CryptoQuant
Furthermore, Bitcoin currency net flows have been largely negative since September 9.
Negative net flows indicate that investors are withdrawing their assets from exchanges to store them in cold wallets. This is again a bullish signal as it means holders have no immediate intention to sell. By doing this, they reduce supply on the exchanges, hastening a move north.
Source: CryptoQuant
Finally, Bitcoin’s NVM ratio has fallen. Another bullish signal as this implied a strengthening of network fundamentals.
While the network is strengthening itself, the market has yet to fully price in the growth. This could mean accumulation in anticipation of a price increase.
In light of positive market sentiment, if these market conditions persist, Bitcoin will challenge the $64,300 resistance level.