Bitcoin [BTC] is looking to add to traders’ woes in September, despite two major upgrades across the crypto-industry. Furthermore, Ethereum is set release the Merge on 15 September while Cardano is set to launch Vasil a week later. These long-awaited upgrades are expected to alter trader sentiment across the industry. However, recent data shows a different story as long as Bitcoin is concerned.
CryptoQuant analyst ‘Maartunn’ recently shared his briefing about a highly volatile weekend. The analyst revealed that Open Interest is showing a steady growth on the charts while BTC continues to trade sideways. As per the analysis, funding rates are helpful in guiding volatility, but it has remained neutral, making it difficult to show where Bitcoin is heading.
Source: CryptoQuant
Adding to this short-term scare, Glassnode reported on increasing pain for investors right now.
According to this update, Percent Supply in Profit (7d MA) just reached a 1-month low of 52.2%. This will come as an untimely reminder of Bitcoin’s underwhelming prices. At press time, Bitcoin was trading at $19,720 after overseeing a 1.65% drop over the week.
Source: Glassnode
Another Glassnode tweet threw light on the falling volume in Bitcoin’s Futures. As per the tweet, Bitcoin’s Perpetual Futures Contracts Volume (24h) recently hit a 5-year low on Kraken at $716,813.
Source: Glassnode
There’s more here
Popular crypto-analysts have also pointed out a worrying pattern of Bitcoin’s past performances in September. For instance, one analyst revealed that in nine of the past twelve Septembers, Bitcoin has finished in the red.
“If we go back and look at all the prior Septembers, just going back to 2010, you can see in fact that all but three of them have been red and the only ones that were green gave about 2.5% move to the upside, a 6% and a 15% move to the upside.”
With no major reasons to be bullish, the social activity is also beginning to stagnate on Bitcoin. As shown in the chart below, Social Volume has also been maintaining its levels as online discussions over Bitcoin see no particular increase.
Source: Santiment
Conclusion
Bitcoiners do not have much to celebrate right now as their king crypto chases down the latest resistance of $20K. From running down $70K to struggling to hit $20K, this is a massive downturn in Bitcoin’s journey.
Ergo, it remains a waiting game for now as BTC enters September with a low-key note.
