Here’s why bitcoin [BTC]September’s earnings may be nothing more than a facade

Things got tough for Bitcoin at the end of August [BTC] when its price plummeted. However, September bought some better days as the cryptocurrency saw only a slight decline in its seven-day performance.

This can be taken as a sign of an uptrend in the near future. At the time of writing, BTC is trading just below $20,000 at $19,950.41 with a market cap of $381,836,195,229.

Source: CoinMarketCap

Although BTC’s 1-month chart was mostly colored red, Glassnode investors’ confidence in the coin did not appear to be waning. This too can be seen as a positive for the coin.

With so many events happening, how soon can we expect the bulls to buckle up and propel BTC’s next upside rally?

What to Expect

Recently, the number of addresses holding 1+ bitcoins just hit an ATH of 900,232, suggesting that investors expect the price to surge in the coming days.

📈 #Bitcoin $BTC The number of addresses with 1+ coins just reached an ATH of 900,232

The previous ATH of 900,198 was observed on September 1, 2022

View metric: https://t.co/s7tx1xxyz3 pic.twitter.com/uQBq8ygpyA

— Glassnode Alerts (@glassnodealerts) September 3, 2022

While opinions vary, several analysts have given their assessment of the situation. For example, TAnalyst, a popular Twitter name, recently posted a chart that showed something interesting.

Additionally, according to the chart, a bullish wedge pattern was forming, indicating the possibility of Bitcoin’s next bullish rally in the coming days.

#BITCOIN IS READY FOR A MASSIVE BULL RUN.

A one-year falling wedge implies a strong subsequent uptrend. pic.twitter.com/Jo4YmmykdZ

— TAnalyst (@AurelienOhayon) September 2, 2022

The overall Bitcoin outflow also supported TAnalyst’s results, and the number rose slightly, which is a bullish signal.

Source: Glassnode

In addition, Bitcoin’s risk reserve ratio has also dropped significantly. This could signal a market bottom while also creating an opportunity for investors to accumulate as the risk/reward ratio increases.

Source: Glassnode

On the other hand, however, some analysts claim otherwise. In his assessment, Maartunn, analyst and author at CryptoQuant, pointed this out in his valuation that the bears might still have an advantage in the market.

According to available data, an episode of miners moving bitcoins on exchanges was followed by a price drop, as a similar trend was seen in May and June.

Source: CryptoQuant

Additionally, as 4,400 BTC were transferred by miners to exchanges on September 2nd, history could repeat itself. There is a possibility that the BTC price will crash in the coming days.

Go forward

BTC’s four-hour chart painted a vague picture of its price action as many indicators showed different readings. The EMA band indicated a possible bull run as the gap between the 20-day and 55-day EMA narrowed, creating an opportunity for a bullish crossover. Also, an ascending triangle formed, further increasing the chances of an uptrend.

Source: TradingView

However, the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) told a different story. The former saw a downtrend and the latter showed a bearish crossover. This minimizes the likelihood of a northbound eruption in the short term.

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