The price of Bitcoin has recovered from its lows in September as increased trading volumes, institutional investments, and favorable technical indicators raise hopes for a rally in Q4.
Summary
- Bitcoin’s price has bounced back to $114,603, reflecting a 2.5% increase in the last 24 hours, bolstered by rising trading volumes and institutional investments.
- Experts suggest that the gains observed in late September signal the commencement of a potential Q4 rally, with some projecting new peaks near $180K.
- On-chain analytics indicate accumulation by long-term investors, a decline in exchange reserves, and positive technical indicators.
Following a turbulent September, Bitcoin has gained traction as it approaches the close of 2025, climbing back above $114,000. During the last 24 hours, Bitcoin grew by 2.5%, trading at $114,603. The leading cryptocurrency is now just 7.7% shy of its peak of $124,128 recorded on August 14.
Moreover, market activity has seen a pronounced uptick. After several weeks of subdued sentiment, Bitcoin (BTC) recorded a 70% increase in daily trading volume, reaching $58.8 billion within the last 24 hours, showcasing a revival in investor engagement.
Bitcoin poised for a Q4 surge
In a recent assessment, CryptoQuant contributor XWIN Research Japan pointed out that Bitcoin’s rapid recovery in late September was not mere coincidence. The Federal Reserve’s interest rate cut on September 17 weakened the U.S. dollar and propelled gold prices to new heights, creating a favorable environment for Bitcoin as a digital alternative.
XWIN noted that capital typically flows into gold before shifting to Bitcoin as risk appetite increases, a pattern that manifested last month.
Institutional interest further fueled the momentum. The Securities and Exchange Commission’s loosening of Exchange Traded Fund listing regulations fostered optimism, resulting in new products in XRP (XRP) and DOGE (DOGE), alongside consistent inflows into significant funds such as BlackRock’s IBIT and Fidelity’s FBTC.
XWIN concluded that these developments, along with diminished selling pressure from both short- and long-term holders, indicate that the September rally was not a mere fluke but the onset of a stronger phase leading into Q4.
Accumulation trends suggest higher Bitcoin targets
Another contributor at CryptoQuant, Carmelo Alemán, emphasized additional on-chain metrics that bolster the bullish narrative. Over the past year, Bitcoin’s market capitalization has risen from $870 billion to $1.07 trillion, propelled by average daily inflows of $385 million. Global liquidity is still on the rise, while large wallets and miners are gradually accumulating more Bitcoin.
Alemán believes these indicators imply that Bitcoin is currently in an accumulation phase, poised for a subsequent upward move, with Q4 likely to see new all-time highs. He even predicted that, if institutional inflows and liquidity trends persist, Bitcoin could reach $180,000 before the year concludes.
Technical analysis of Bitcoin’s price
These perspectives are also reinforced by technical charts. The most recent recovery was initiated by oversold relative strength index levels in September, and Bitcoin has established robust support in the range of $108,000 to $110,000.
Across all major timeframes, moving averages are currently sending buy signals, indicating an overall upward trend. Resistance is noted at the $118,000 mark, followed by the all-time high in August around $124,000.
If these resistance levels are successfully breached, analysts suggest that a surge towards $150,000 to $180,000 by year-end is feasible, provided liquidity inflows and institutional enthusiasm persist.
