The crypto market remains battered by the bear market. Cautious, investors withdrew, on September 30, 34,723 BTC from the exchanges. The information comes from the company Santiment, which specializes in analyzing the crypto market. This is the highest level of BTC withdrawal in a single day for three months. It is above all the fourth largest withdrawal peak this year. While this could reflect weak interest from stakeholders, some see it as a bullish signal for the price of BTC. Decryption.
Will bitcoin (BTC) climb 22%?
According to Santiment, this massive withdrawal of tokens is a potentially bullish indicator for BTC. The company explains that these figures reflect a weak sentiment among stakeholders regarding the bitcoin market. Weak sentiment can be interpreted as a potentially bullish indicator if certain fundamental conditions are met. In addition, she does a historical analysis of the situation and indicates that the last time such a quantity of tokens was removed from the exchanges, last June, the price of bitcoin rose by 22% in the weeks that followed.
Same story with independent analyst Will Clemente, who prefers to rely on historical analysis. “Historically, the fourth quarter was by far the best performance for bitcoin, with an average quarterly return of +103.9%. October and November were the best performing months, with average returns of 24% and 58%. Does seasonality matter? Let’s see (…) It remains to be seen whether history will repeat itself in this scenario”does he have wrote on Twitter.
On-chain data analytics firm CryptoQuant also sees bitcoin bullish before the end of the year. She believes that the decline in exchange reserves could be a sign of a return to demand in the market. Thus, the arrival of this demand should boost the price of bitcoin.
After an average loss of over 3% in September, BTC has yet to show any real signs of growth in October. However, analysts believe that it will follow an upward movement as it has seen in recent fourth quarters. This is regardless of whether the sentiment of the speakers is negative.
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