Bitcoin Bull Run: September 2024 the Turning Point For BTC Price, Here’s Why
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Despite the current bearish sentiment surrounding Bitcoin, there is significant optimism about a potential bull run starting in September 2024. Analysts are closely watching aggressive buying of call options from September through December, hinting at major market movements during the US elections.
But wait – what should you expect next? Here’s a detailed look.
Bitcoin Price Capped Short-Term
Currently, Bitcoin’s price is trading slightly down at $64,362 with a market cap of $1.268 trillion. According to a report from QCP Capital, Bitcoin’s price will likely remain capped for the next two months, with large selling of call options set to expire soon. However, the report anticipates a bullish surge towards the end of the year, driven by aggressive buying of call options for later in 2024.
Miners’ Selling Pressure
According to the report, in June, Bitcoin miners sold over 30,000 BTC worth $2 billion. This sell-off was driven by increased operational costs and reduced profits following the recent Bitcoin halving, forcing miners to liquidate their holdings. As an outcome, due to this selling pressure, Bitcoin’s price rebound may be delayed. Plus, the market has been unsettled by the German government’s plans to sell a large supply of Bitcoin, further contributing to the price cap.
Investor Sentiment
With continuous sell-off from the ETF market, spot Bitcoin ETFs registered over $500 million in the past week, reflecting institutional investors’ cautious stance. Despite this, some bullish developments have occurred, such as MicroStrategy’s recent purchase of nearly 12,000 BTC, valued at $800 million. Moreover, BitMEX CEO Arthur Hayes has proposed a positive macroeconomic scenario for a Bitcoin bull run due to the Japanese banking crisis.
Bull Run vs. Bull Trap
While there is optimism about a bull run, there is also concern about a potential bull trap, where a temporary price increase could reverse, trapping optimistic investors. Analysts advise caution, noting that regulatory approvals and market events might already be priced in, potentially leading to a short-term pullback before long-term gains.
Interestingly, the mixed signals from the market highlight the importance of due diligence and a measured investment strategy. Traders are advised to remain cautious, as the forward-looking nature of the market could lead to a short-term correction before an actual bull run starts.
Are you ready to see Bitcoin take off?
