- Bitcoin is set for its strongest September performance, surpassing previous gains, especially the 6% rally of 2016.
- Coinbase premium and spot Bitcoin ETF inflows signal growing retail and institutional demand for BTC.
- Bitcoin breaks a five-month bear trend, forming a higher-time-frame bullish pattern at key resistance levels.
Bitcoin is on track for its most successful September, despite the month’s usual reputation for bearish performances. Historically, the strongest September for Bitcoin saw a 6% rally back in 2016, but this year, the cryptocurrency has already far exceeded that figure.
Recent data from CoinGlass highlights this upward trend, showing that Bitcoin has experienced a strong month in Q4 after any bullish September—most notably in 2015, 2016, and now 2023. Investors are speculating that this could lead to an even more bullish quarter ahead in 2024.
Signs of Retail and Institutional Demand Grow
One of the key indicators of growing interest in Bitcoin comes from the Coinbase premium, which hit a two-week high on Sept. 26. This metric measures the price difference between Bitcoin on Coinbase and other exchanges, often indicating strong U.S. retail demand. As Bitcoin prices surpassed $65,000, spot Bitcoin ETFs also saw inflows of $365.7 million, further suggesting renewed institutional interest in the asset.
CryptQuant’s head of research, Julio Moreno, pointed to these indicators as a sign that demand for Bitcoin is building. However, further data will be needed to confirm if this trend signals a long-term return of retail investors.
Breakout Points to Bullish Future
In addition to these bullish market indicators, Bitcoin recently broke through the $65,000 resistance level, forming its first higher-time-frame (HTF) bullish pattern in five months. Analysts suggest this could be the beginning of a long-term trend shift, with Bitcoin now eyeing resistance levels at $68,100 and $71,500.
Although some short-term pullbacks may occur, this new higher-high (HH) and higher-low (HL) pattern strongly suggests that the cryptocurrency is positioned for a continued upward trend.
