Bitcoin Looks to be Revving Up for a Bullish Month

Recent reporting and impending events like the Bakkt Bitcoin Futures Exchange launch on Sept. 23 have translated to positive price action for the top digital asset by market capitalization.

From a technical standpoint, Bitcon’s market structure is quite bullish and the digital asset has bounced relatively predictably within a massive wedge that first formed on June 26 when Bitcon rallied to $13,800.

The custody platform is maintained by Bakkt Trust Co., and the company has received permission from the New York State Department of Financial Services (NYSDFS). Bakkt’s Bitcoin futures exchange is scheduled to launch on Sept. 23 and many investors believes this event will help boost Bitcon’s value over the long run.

Analysts predict a higher rate of inflow into Bitcoin as a result of the futures and the fact that realized contracts are denominated in Bitcoin is also a bullish factor.

Interestingly, the launch of Bakkt aligns with the termination of the bull pennant on the Bitcoin daily chart.

Therefore, it’s possible that a decisive move could occur from Sept. 15 — Sept. 23.

Another sign that Bitcoin has some bullish days ahead is the fact that large institutional investors are willing to pay a hefty premium in order to take a position in the digital asset.

Currently, GBTC trades for $12.85 and each share represents 0.000097753 BTC. This amount of BTC is actually worth $10.48 if assessed from Bitcoin’s spot price. Therefore, institutions are paying a 22.6% premium for Bitcoin exposure.

According to Alfred, institutional investors are used to custodians holding assets on their behalf and “the premium is the amount you’re willing to pay to not custody your own private key.” GTBC also has a 2% annual fee.

Alfred also said that “no institutional investor would pay this in any other asset-class” but crypto’s fringe appeal has allowed the premium to grow to 22.6%.

Another bullish indicator for Bitcoin is the number of Bitcoin being transferred to and from wallets.

This shows that the market sentiment is still bullish for the long-term as investors are buying more BTC and holding on to it. Furthermore, 614,500 addresses contain 1 to 10 BTC, and less than 0.5% of these wallets had more than 10 BTC.

This number is not representative of all individual bitcoin owners, as a single user could hold multiple wallets. Another report indicates that 83% of all Bitcoin holders are sitting on a profit, as they purchased at a lower price than today’s current spot rate.

Sentiment wise, Bitcoin is bullish and from a technical standpoint the market structure for Bitcoin is also bullish.

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