Bitcoin closed September on a positive note, and some market observers suggest this could be the starting signal for a new upward move. But what do the numbers and signals behind the scenes actually reveal?

Stablecoins show buying power

One of the key indicators gaining attention is the ratio of stablecoins to Bitcoin, known as the Stablecoin Supply Ratio (SSR). This measures how much buying power is available through digital dollars and euros. Recently, this ratio declined, and its associated strength signal, the RSI, is at its lowest level in four months. It currently stands at 21, generally considered ‘buy‘ territory, according to CryptoQuant. In other words, there is relatively high capital available to purchase Bitcoin. At the same time, the supply of stablecoins continues to grow. Each new coin added increases market liquidity, giving investors confidence. The idea is simple: the more capital ready to buy Bitcoin, the stronger the potential momentum. The last time the RSI was around this level, Bitcoin‘s price bottomed below $75,000 before surging 67% to the current all-time high of $124,500.

Not only stablecoins show buying power, but also the largest Bitcoin investors continue to build their holdings.

Long-term addresses now hold a record amount of nearly 300,000 BTC. This indicates that experienced holders have confidence in Bitcoin over the long term and may be positioned for larger movements.

Bitcoin price signals a possible bottom

Recent technical patterns suggest that last week‘s dip to around $108,000 may have marked a local bottom. These kinds of resets occur only a few times per year and are often followed by a strong recovery. Once panic subsides and new buyers step in, it can act as a springboard for the next price surge.

September ends green, Q4 could be profitable

Historically, September is not the friendliest month for Bitcoin. On average, it even records a slight loss over the years. Yet Bitcoin closed this September above $114,000, marking a rare positive outcome. This could be an important signal for the coming months. When September ends green, past cycles often show a strong rally in Q4. The period from October to December has traditionally been the best time for Bitcoin gains, with average profits in previous years reaching significant levels.

What does this mean for the near future?

In summary, multiple signals suggest the market currently holds substantial buying power and optimism. Stablecoins are present, long-term holders continue to build their positions, and technical patterns point to a potential bottom. Taken together, these factors paint a scenario where Bitcoin could see significant movement in the coming months.

Disclaimer: This article is for informational purposes only. Always do your own research and do not base decisions on this text.