Bitcoin Bucks "Rektember" Trend with First Weekly Gain Since August

Bitcoin records its first weekly gain since August, marking an almost 3% rise and breaking a four-week downtrend.
On-chain data, increased USDT supply, and rising unique Bitcoin addresses suggest a positive shift in market sentiment.

In an encouraging departure from its recent trend, Bitcoin has achieved its first weekly gain since August, posting an almost 3% rise. This shift in momentum disrupts a consistent four-week dip that had been weighing on the cryptocurrency’s value. On-chain expert Ali Martinez has pointed out the significance of this change, highlighting the increase in new Bitcoin addresses as one of the most bullish divergences from an on-chain perspective.

Over the past month, Bitcoin experienced an 11% decline in its value, primarily driven by a sharp price drop in mid-August. This drop had a significant impact on Bitcoin’s overall market capitalization. Historically, September has earned the nickname “Rektember” due to Bitcoin’s typical price drops during the month. However, this year appears to be different. With its recent 3% ascent, Bitcoin reached a monthly high of $26,750, subsequently settling at $26,592 at the time of this report. This resilience in its price suggests that Bitcoin has found robust support, potentially helping it maintain earlier gains made this year.

Positive Market Indicators

The year 2023 witnessed significant price fluctuations for Bitcoin, primarily fueled by speculations surrounding the US Securities and Exchange Commission (SEC) potentially approving a Spot Bitcoin ETF. The recent absence of major news regarding this ETF may contribute to Bitcoin’s current price stability.

In a related development, renowned crypto analytics entity Santiment presents an optimistic outlook for Bitcoin. They emphasize the surge in the supply of Tether’s USDT on crypto trading platforms, reaching its highest level since March at 24.1%. This coincides with a decrease in the volume of Bitcoin and Ethereum (ETH) stored on these platforms, indicating that investors are increasingly choosing to hold their assets rather than trade them.

The increase in USDT supply, coupled with the reduction in BTC and ETH assets, suggests a potential uptick in market buying interest. This assertion aligns with the recent surge in unique Bitcoin addresses, a phenomenon not seen since April. This spike signifies growing engagement in the Bitcoin ecosystem, echoing Santiment’s bullish outlook for the leading cryptocurrency.