Three Factors That Could Propel Bitcoin Price to $68K in September

Recent technical analysis and blockchain data suggest there may be a short-term upward trend for Bitcoin.

Decreasing Bitcoin Supply on Exchanges

On-chain data indicates a potential rally for Bitcoin in the upcoming weeks, driven by diminishing supply on exchanges. As of August 23, centralized crypto exchanges held approximately 2.68 million BTC, marking an 11% decrease from 3.011 million BTC at the start of the year. This drop coincides with a 43% increase in Bitcoin’s value year-to-date.

A reduced supply on exchanges suggests that traders are more inclined to hold their BTC than to sell it for other assets or fiat currencies. If demand remains strong, this trend may enhance Bitcoin’s potential to sustain its upward momentum.

Institutional investors could continue to drive demand as they invest in spot Bitcoin exchange-traded funds (ETFs). Data indicates US-based spot Bitcoin ETFs have experienced positive flows in nine of the last thirteen trading days, reflecting a persistent institutional interest in these investment vehicles.

Despite this, on-chain data from CryptoQuant shows that inflows into spot Bitcoin ETFs have decreased significantly, with daily averages dropping to 1,300 BTC. Analysts emphasize that robust institutional interest is crucial for Bitcoin to reach new all-time highs.

Accumulation by Bitcoin Whales

Demand remains strong among large Bitcoin holders, often referred to as “whales.” According to data from Santiment, whale addresses holding between 100 and 1,000 BTC have accumulated around 94,700 additional coins in the past six weeks.

This accumulation aligns with a 13% increase in Bitcoin’s market valuation since the July low of $53,550, indicating that large holders perceive Bitcoin’s value as likely to rise in the near future.

Bitcoin Price Technical Breakout

Bitcoin’s price has been trading within what appears to be a bull pennant formation following its recent low. A bull pennant is typically a bullish continuation pattern that occurs after a notable price increase, consolidating within a triangular range before breaking out upwards.

Currently, Bitcoin is trading above the upper trendline of this pennant near $60,300. If the price remains above this resistance level, a breakout target could reach approximately $68,000, representing a 12.4% increase from current values.

Bitcoin’s rise above $61,800 on August 22 has turned the 200-day exponential moving average (EMA) at $59,446 into a new support level. The in/out of the money around price (IOMAP) model shows this EMA lies within the price range of $58,653 to $60,465, where a substantial amount of BTC was previously purchased by numerous addresses.

Increased buying activity in this demand zone could potentially elevate Bitcoin’s price in the coming weeks, reinforcing a favorable outlook for the asset.

This analysis does not constitute financial advice. All investments and trading activities carry risk, and individuals are encouraged to conduct their own research before making investment decisions.