The price of Bitcoin (BTC) started September negatively and fell below $26,000 again on Friday. However, a key on-chain indicator shows growing upward pressure from US whale investors.
The US Federal Reserve is expected to announce new interest rates on September 19th. With the crucial monetary policy meeting just ten days away, US-based institutional firms appear to be accumulating Bitcoin (BTC) at the last minute. Will this trigger a Bitcoin price rally in the coming days?
Wall Street whales are putting buying pressure on Coinbase
As the next Fed meeting approaches, a key on-chain indicator shows that US institutional investors have increased buying pressure. CryptoQuant’s Coinbase Premium Index shows the percentage difference between Bitcoin prices on Coinbase Pro and Binance spot markets.
While Binance dominates the retail spot market globally, Coinbase Pro is largely dominated by US-based institutional firms and high-net-worth traders. Positive values of the premium index values therefore indicate increasing buying pressure from US investors on Coinbase.
Whales in the US could trigger a Bitcoin (BTC) price rally | Coinbase Premium Index. Source: CryptoQuant
The chart above shows that on September 7th, the Coinbase Premium Index reached positive values for the first time this month. But strangely, the last time the Coinbase index was above 0.80 was around March 2023. And this was immediately followed by a price increase towards $30,500, a then high in 2023.
It remains to be seen whether the Coinbase Premium Index will continue to rise. If this happens, it could boost retail investor confidence and trigger a price rally ahead of the next Fed meeting.
Increasing liquidity in BTC markets indicates an impending trend reversal
This bullish sentiment is further reinforced by the liquidity flowing into Bitcoin spot markets this week. According to Cryptoquant, Bitcoin spot trading volume has increased steadily since September 2nd and has almost doubled.
In numbers, the BTC spot trading volume on September 2nd was 14,230 BTC. At the end of September 7th, a total of 32,632 BTC were traded on various crypto exchanges. This represents a 130% increase in spot market volume within a week.
Whales in the US could trigger a Bitcoin (BTC) price rally | Coinbase Premium Index. Source: CryptoQuant
Typically, spot trading volumes decline in bear markets as distressed investors close their positions. Therefore, increasing BTC spot volumes during the current flat price action suggests that liquidity and investor interest are returning to the market. This increased liquidity could help Bitcoin traders execute orders efficiently in the coming days while keeping prices stable.
Historical data trends also show that recent Bitcoin price rallies have often been preceded by an increase in BTC spot trading volume.
In summary, buying pressure from US-based whales and the increase in BTC spot trading volume could combine to trigger a Bitcoin price rally.
BTC Price Prediction: $28,000 is a realistic target
From an on-chain perspective, US-based whales could trigger a rise in Bitcoin price towards $28,000 in the coming days. This bullish stance is also confirmed by the In/Out of Money Around Price data, which depicts the current purchase price distribution for Bitcoin holders.
It shows that bulls could gain momentum to push towards $28,000 if BTC clears $26,500.
As shown below, the 2.31 million addresses that purchased 740 BTC at the maximum price of $26,560 are currently a major resistance. But if US whales’ optimism increases, Bitcoin price could rise to $28,000 to reach.
Conversely, the bears could take control if BTC price falls below $24,500. However, as shown below, 654,000 addresses had purchased 253,000 BTC at the floor price of $25,000. They could provide significant support by making valiant attempts to defend their positions.
However, if this support level gives way, BTC price could eventually decline towards $24,000.
Disclaimer
In accordance with Trust Project policies, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always do your own research and consult a professional before making any financial decisions.
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