After reaching a multi-week high of around $66.5k last Friday, Bitcoin’s (BTC) price has suffered low bullish momentum. The flagship coin has dropped over 3 percent in the last three days to trade around $64.5k on Monday during the mid-London session.
As of September’s last day, Bitcoin’s price has significantly recovered in the past four weeks following the ongoing global economic shift. Furthermore, Bitcoin’s price has rebounded over 25 percent in the last four weeks after reaching a correction low of about $52.6k earlier this month.
Factors Influencing Bearish Sentiment for Bitcoin Price
Crowd Sentiment
As the fear of further crypto capitulation gradually decreased in the past three weeks, on-chain data shows whale investors led by U.S. spot Bitcoin ETFs accelerated accumulation pace. According to the latest market data, the US spot Bitcoin ETFs registered over $1.9 billion in cash flows in the past three weeks.
Consequently, Bitcoin’s price rallied in tandem with the gold market, thus increasing investors’ appetite to long for the instrument. However, Santiment believes that the market tends to respond in the opposite direction from the crowd’s expectations.
Overheating Futures Market and High Expiration of Options
As September approaches the end, traders have been preparing for the $8 billion Bitcoin options expiration over the weekend. Ordinarily, Bitcoin price experiences heightened volatility during the expiration of notable liquidity in the options market.
Meanwhile, on-chain data analysis provided by CryptoQuant shows that Bitcoin’s Open Interest market has risen to over $19 billion. From historical data, Bitcoin price has dropped every time that the Open Interest market has spiked above $18 billion.
What Next?
As the global liquidity gradually increases, Bitcoin price is expected to gradually rise in tandem. Furthermore, the upcoming US 2024 general election is expected to be a bullish trigger as it has been in the past.
However, the notable rise of altcoins – led by Ripple’s XRP – is expected to lead to a major altseason, amid the expected reversal in Bitcoin’s weekly dominance.
