Bitcoin's price rebounded to $57,050 after a dip to $53,930, marking a strong start to this week despite a bearish September. Currently trading at $57,226, on-chain analysis indicates a possible last dip before a substantial rally in Q4.
The FUD-driven shorting on major exchanges like Binance and Bitmex triggered the recent price recovery, according to a post by Santiment on X. Historically, such short positions often lead to a market bounce.
Santiment's data suggests that traders' pessimism might further drive Bitcoin prices higher, while additional indicators like the Delta Cap indicate a delay in the uptrend.
The Delta Cap, which is closely monitored to identify Bitcoin's bottom, currently shows a gap that may delay a sustained upward move. The significant gap between the Delta Cap and the Realized Cap, currently at $407.36 billion and $621.35 billion respectively, signals the market's potential for further accumulation.
Crypto analyst Rekt Capital also agrees with the sentiment, predicting a positive outlook for the remaining months of the year.
In terms of technical analysis, Bitcoin faces resistance at the 20-day and 50-day EMA levels, currently around $58,000 and $60,000. A failure to break through these levels might push the price down to $56,209 or even $52,954.
If Bitcoin manages to overcome these resistance levels, it could invalidate the bearish outlook and set the stage for a strong rally, potentially reaching $70,000 by the year's end.
