Key facts:
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Bitcoin is marking increasingly higher lows, showing an upward trend.
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There are expectations of new historical highs by the end of the year.
After months of turbulence in the financial markets, bitcoin (BTC) is showing clear signs that can be interpreted as a bullish recovery.
The price of the digital asset, which had been falling since March, went through a strong correction in the months of April, May, June and July, reaching its lowest point on August 5, known as “black monday”.
On that date, Bitcoin hit a low of $49,356 due to widespread panic which spread from traditional markets to cryptoassets.
But something has changed since then. While Bitcoin continued to have up and down movements, each new low has been higher than the previous one, demonstrating a clear upward trend, as seen in the chart below. TradingView.
BTC price. Source: TradingView.
At the time of this writing, bitcoin has an increase of 17% from the levels recorded in Augustwhen fear ruled the markets.
This increase has generated optimism among investors, who are now detecting signs of a possible bullish rally.
Indicators that reinforce the bullish trend of bitcoin
One of the indicators that supports this perspective is the Bitcoin Puell Multiple, which reached the 0.4 range for the first time since late 2022according to data from CryptoQuant.
This indicator compares the daily issuance of Bitcoin in US dollars to its 365-day moving average and is frequently used to identify market tops and bottoms.
The current value suggests that bitcoin may be undervalued, which has historically marked buying opportunities for investors, especially those looking to accumulate for the long term.
Two key factors align for the price of bitcoin
Furthermore, two key factors are setting the stage for a possible rise in the price of bitcoin, such as reported CryptoNews.
First, BTC reserves on exchanges have decreased significantlya trend that has historically preceded major market rallies.
Second, the increase in stablecoin reserves, such as USDT, on exchange platforms suggests that investors are prepared to deploy capital and acquire assets like bitcoin.
Matt Hougan, Chief Investment Officer at Bitwise, projects a significant change in the price of bitcoin for the months of October and November, highlighting that October has historically been a favorable month for the digital currency, with an average growth of 22%.
This could mitigate the typical September declines and mark the beginning of a sustained growth cycle that could take bitcoin to new all-time highs before the year is out.
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