Bitcoin Price Prediction for September 2021: Whales Accumulate BTC Ahead of Potential Q4 Rally

Bitcoin price has been under considerable pressure, with a decline of nearly 10% over the past week. This decline follows multiple rejections from the

Recent Bitcoin Price Analysis

After a significant decline from recent highs, Bitcoin price has shown signs of recovery, trading within a narrow range above the $58,000 level. This price movement comes after a sharp drop from highs above $64,000, which encountered resistance at the 200-day moving average.

Bitcoin price is now facing crucial support at the $56,000 level, with RSI on the daily chart dipping below the 50% mark, indicating a bearish trend. If BTC fails to hold above $56,000, the next support could be around $52,000. However, some analysts suggest that the bearish momentum may be showing signs of weakness, potentially allowing for a rebound.

On-Chain Analysis and Market Sentiment

Amid Bitcoin's price volatility, on-chain data provides valuable insights into the underlying market dynamics. One key metric is the Bitcoin Exchange Reserve, which indicates the total amount of BTC held on exchange wallets. This metric has been trending downwards, suggesting an accumulation phase. As Bitcoin reserves on exchanges decline, it increases the chances of a supply squeeze, which could lead to a new price rally.

Another important on-chain indicator is the Puell Multiple Index, which is used to assess Bitcoin miners' profitability. Currently, the index sits between 0.6 and 0.8, indicating that the market is in a "decision zone." A drop below 0.6 has historically presented a favorable opportunity for Dollar-Cost Averaging (DCA), while a rise above 0.8 usually signals the beginning of a bullish market.

What to Expect for BTC Price in September

Despite the overall market downturn, the number of Bitcoin whales — wallets holding 100+ BTC — reached a 17-month high, with 283 new wallets being added in August. In an attempt at a Bitcoin price prediction for September, this increase in large holders suggests a growing confidence in Bitcoin's long-term profitability, hinting at potential bullish momentum in the coming months.

However, it's also worth noting that September has historically seen bearish trends, with a potential continuation before a recovery in Q4.