Bitcoin (BTC) is moving into the historically sinister month of September. It continues to fluctuate below $20,000 while struggling to break above the 200-WMA at $23,000. However, technical and on-chain data suggest that Bitcoin price should now return to the 200-WMA.
Has Bitcoin (BTC) price bottomed out?
The Federal Reserve’s hawkish stance on interest has plunged the cryptocurrency market into free fall. This restricted the Bitcoin (BTC) price below $20,000. As prices fell, more investors seized the opportunity to “buy at the bottom”.
Earlier we said that we confirm the bottom if the number of new daily addresses exceeds 415,000. Data from Glassnode shows that the number of new daily addresses on the BTC network has increased by over 417,354. All in all, the outlook is positive and the Bitcoin price should start increasing once again.
In a tweet, on-chain analyst Ali Martinez revealed that BTC movement over a four-hour period shows Bitcoin price rising every time it touches the rising RSI trendline. The analyst recently posted on Twitter:
The question is whether the trendline will continue again this time and help BTC recover some of the ongoing losses.
#Bitcoin | Notice $BTC tends to rebound each time it reaches this rising RSI trendline in the four-hour chart!
The question is whether, this time around, the trendline will hold again and help #BTC regain some of the losses incurred. pic.twitter.com/FWh4x8US2X
— Ali (@ali_charts) September 16, 2022
But BTC lacks the energy of whales and miners
With buying pressure low, the Bitcoin price shows no signs of being supported by miners or whales. The number of addresses holding 1000 or more BTC continues to decrease. A few dormant Bitcoin whales have also recently opted to splurge on their wallets. On the other hand, miner reserves have been falling steadily this year. CryptoQuant reports that the current amount of reserves held by miners is 1.86 million.
But on Binance Futures, almost 73.25% of all accounts with open BTC positions are long. The result shows that investors continue to accumulate at current prices.
The triggers of the rally
The September 21 Fed rate hike has the biggest impact on the direction of Bitcoin (BTC) price. Wall Street banks such as Goldman Sachs predict that the Fed will prefer a 75 basis point rate hike, despite the possibility of a 100 basis point increase.
As you follow on Kriptokoin.com, there has been a steady decline since September 7, encouraging the bulls in the market to push the BTC price above $22,000. However, the US dollar index rose above 110 once again. According to most experts, the index drop will confirm the bullish move. At this point, corporate acquisitions increased. In reality, the main factor driving the price to 200-WMA in this case was MicroStrategy buying more Bitcoin.
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