Bitcoin (BTC) Set For Biggest September Gains In A Decade: Here's Why

Bitcoin emerged as an investors' favorite this past week, recording a price rise of 4.07% according to data from CoinMarketCap.

Bitcoin price finally started an upward trend in September after a long period of stagnation and was able to increase by 4.07%. This price increase, which made Bitcoin reach the price level of $66,000 for a while, was last seen in late July. However, despite this rally extending Bitcoin's "unusual" positive performance in September, certain market conditions raise concerns about the rally's sustainability.

In a Quicktake post on CryptoQuant, an analyst with the username Wenry outlined several reasons why Bitcoin may not sustain its current uptrend.

First, Vennery points out that there is little interest from retail investors in Korea and the US, as indicated by Taker's steady volume. This contrasts with previous Bitcoin price rallies where retail activity in these countries was prominent. Therefore, this analyst assumes that the current price increase is without new investments and is likely to be driven by a select group of market participants.

Furthermore, Venery is currently highlighting a high level of open interest in the BTC market, but the asset is still consolidating due to low spot volume in a range-bound market i.e. The combination of both factors indicates a significant lack of buying interest in Bitcoin despite the current rally.

Another point that Wenri raised is that the current increase in the price of Bitcoin is due to the increase in derivatives transactions due to macroeconomic factors such as the decrease in interest rates. This cryptocurrency analyst points to the lack of equal support from the cash market, so the rally is likely to be a "temporary boost rather than a structural market shift".

In conclusion, Venery states that the lack of significant cash market volume, consistent Taker volume and low retail participation all threaten the longevity of Bitcoin's current rally. Significantly, if retail investors stay away from the market, Bitcoin is likely to remain in consolidation or even experience a price correction.

On the other front, popular analyst Michael van de Poppe has advocated for Bitcoin to rise above the all-time high of $73,750 in the last quarter of 2024, followed by a similar trend to gold. Van de Poppe's prediction seems quite plausible as the fourth quarter is traditionally the best time for Bitcoin. In addition, this famous analyst also supports altcoins to see a 3-5x increase in price during the same period.

At the time of writing, Bitcoin is still trading at $65,810 after a 0.40% gain the previous day. At the same time, the daily trading volume of this asset decreased by 53.16% and reached 65,649 dollars.

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