Market players predicted that September would see bitcoin take a hit and stir major price dips. The market did follow the predicted pattern, as a major sell-off hit the market with bitcoin and altcoins shaving off significant gains. Even though September showed itself to be highly promising, as Bitcoin restarted $50,000 on multiple occasions, the milestones were short-lived.
Bitcoin expected to increase by 31% in the near term
At report time, the majority of the leading cryptocurrencies are nurturing losses, and Bitcoin is not exempted. Trading at a price of $47,421, a mile drop from its recent $48,000 high. It appears that the bulls are attempting to retest $50,000 once again, but have repeatedly failed to hold pressure above $48,000. While some traders raise concerns about the struggling price of Bitcoin, almost all prominent proponents are just as bullish on Bitcoin now, as they were when prices tapped $50,000. In line with this sentiment is an expected 31% price surge set to push Bitcoin prices higher.
The prediction was shared by the Bitcoin Stock to Flow model creator who is ‘blind spotting’ the current bear market, which he has reiterated is only temporary as S2F indicators, alongside on-chain indicators show otherwise. Still sticking firmly to his price prediction from June, the analyst is convinced Bitcoin can take on $63,000.
As he wrote before, “Bitcoin is below $34K, triggered by Elon Musk’s energy FUD and China’s mining crackdown. There is also a more fundamental reason that we see weakness in June, and possibly July. My worst-case scenario for 2021 (price/on-chain based): Aug>47K, Sep>43K, Oct>63K, Nov>98K, Dec>135K”.
Asides from the bullish on-chain metrics, Bitcoin is also seeing an increase in demand from many different angles. As Glassnode recently noted, miners are continuously accumulating Bitcoin.
“Bitcoin miners have been in accumulation mode over the last 6 months, with the unspent supply climbing by 13,000 BTC since January.
After a small spend of 1,360 BTC in late August, it appears miner balances are increasing once again.”
Similarly, institutions are increasingly securing a decent amount of BTC as reports have shown in the past months. Whales have also added 184,699 BTC to their holdings within the last 2 months, bringing the total to $8.8 billion at an average BTC price of $48K.