Even if Bitcoin ended September with a loss, previous good rallies in October may encourage bulls. Only twice since 2013 has BTC ended the month of October in the negative, according to data from coinglass: in 2014 and 2018. This makes a recovery in October more likely.
Since last week, BTC price has been hovering around the June lows of $17,550. The long wick on the candlestick indicates that the bears are still selling on the rallies despite the bulls’ attempts to initiate a recovery this week.
The S&P 500 (US500) has decreased for six straight days, according to TradingView. The index briefly fell below its low from June on September 27, a sign that investors are continuing to sell in anticipation of a recession brought on by the US Federal Reserve’s rate increases.
Although Bitcoin (BTC) June lows are yet to be tested, the bulls have so far failed to hold the price above $20,000. By keeping BTC below $19,000 by September 28, 2022, bears expect a consolidation of their positions.
Institutional investors lose hope
But it appears that institutional investors are not expecting a turnaround any time soon. According to data from ycharts, Grayscale Bitcoin Trust, which is thought to be preferred by institutional investors due to its simplicity of usage with a brokerage account, is currently selling at a discount of more than 35% to its net asset value.
Market intelligence company Glassnode said in its The Week OnChain newsletter on September 26 that bitcoin hodlers are not panicking during the current bad market and that short-term holders are responsible for most of the coin movement.
It stated, “The HODLer class remain resolute with both mature coin USD wealth reaching ATHs, and a multitude of lifespan metrics fully resetting to historical lows, emphasizing the unwillingness to spend held coins. This suggests the majority of current market churn is associated with the Short-Term Holder class.”
