Bitcoin fell below $ 42,000 today as the largest cryptocurrency lost more than 4% at press time. Data from TradingView shows that BTC / USD has hit a local intraday low of $ 41,576.

Source: TradingView

The decline followed a $ 1,000 hourly loss late Monday that shattered any upside hopes from the weekend high of $ 44,400.

The decline was predicted as analysts are targeting potential lows below $ 40,000, such as: Bitcoin magazine reported.

On Monday, trader “cevo” also did not believe that Bitcoin’s strength would continue into the new week, arguing that levels above $ 44,000 were simply regaining liquidity before falling again.

“Probably a belated removal of the short before it continues to drop. The idea will void over $ 45.2,000 if it builds a bull market structure from there. “

#bitcoin

Probably rinse out the late shorts before the next leg. Idea above 45.2k invalid if it builds a bullish market structure from there. pic.twitter.com/9ofwkkD8lP

– cevo (@cryptocevo) September 26, 2021

Meanwhile, with just two days to go until the end of the month, attention has drawn to USD 43,000 as the “worst case” for BTC / USD in late September.

PlanB, the analyst who correctly forecast a “worst case” of $ 47,000 for August, predicted that October will end at least $ 63,000.

“Smart bet” on the recovery in the fourth quarter

Not only PlanB, but more and more market participants are convinced that the fourth quarter will represent a turning point in the Bitcoin bull cycle.

For example, analyst TechDev argues that historical precedent alone provides credibility for a new BTC bull run. Based on the Bitcoin price charts 2013 and 2021, he summarizes:

“Investing is a game of chance. Since the story has proven prophetic in the first three quarters, I think it’s wise to bet on Q4. ”

The source: TechDev / Twitter

One factor that may have supported analysts’ bullish view is that stablecoin reserves – the total amount of stablecoins held in wallets by all exchanges – appear to have bounced back to all-time highs.

When the indicator rises, it means that investors are leaving the volatile crypto markets and switching to stable fiat tokens.

A high value could mean that investors are amassing stablecoins while waiting for the optimal entry point into markets like BTC.

Conversely, if the indicator falls, it means that investors have started moving money from stablecoins back into the volatile market. Large volumes that migrate from exchanges to private wallets will also result in lower reserves.

The source: KryptoQuant

According to the chart, this indicator is showing an upward trend again as its values ​​are approaching the high.

The trend this year is that whenever the stablecoin reserves increase, Bitcoin will enter a phase of liquidity accumulation. And when the indicator falls, the stablecoin is converted into BTC, which indicates a rise in the price of the cryptocurrency.

This trend can also be seen in the graph above. When BTC bottomed out on the day of El Salvador’s Bitcoin Act, stablecoins began to drop rapidly.

Now the stablecoin reserves have peaked again. This could mean investors are waiting to get their money back if the price is right.

Perhaps once Bitcoin is pumped through these coins, it will take a big step. This could be one of the keys to BTC reaching a new ATH.

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Annie

Bitcoin magazine

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