CryptoQuant analysis suggests Bitcoin local bottom is forming, supporting 'Uptober' thesis

CryptoQuant analysis indicates that onchain conditions suggest a local price bottom for Bitcoin may have occurred, supporting the traditional 'Uptober' performance thesis. Key data points include a 1.7% decrease in Bitcoin exchange reserves (from 2.726 million on Sept. 20 to 2.68 million as of Tuesday), whale holdings remaining above 3 million BTC despite price drops, and apparent demand recovering to near-neutral levels after being negative throughout 2026. XWIN Research Japan said confirmation requires sustained ETF inflows, stronger US spot buying, and continued demand recovery.