Bitcoin (BTC) fell below $ 10,000 for three days in a row. Despite the weakness in BTC’s short-term trend, an analyst in this series believes that the long-term trend has not been broken.
Over the course of five days, the price of Bitcoin fell from $ 11,462 to $ 10,000, recording a decline of 12.6%. Gold has also struggled to bounce back from the dwindling momentum that coincides with the recovery in the US dollar.
How do they keep the future prospects for Bitcoin still?
According to Willie Wu, the network’s market analyst, the indicators for local networks are increasing.
String indicators include “HODLing” activity, active addresses, network activity, and percentage of NVT. For example, the Bitcoin NVT signal attempts to identify market peaks by comparing the price with the daily transaction value.
The data points in the chain probably indicate a medium-term bullish trend due to the sharp fall in Bitcoin from $ 12,000. Although the price of BTC has fallen by almost 20% since the annual increase, network activity has remained relatively stable. September 6 at Wu:
“The internal shift in the chain is bullish (with a view to the next few weeks) and the rejection has bottomed out, although it may be. Playing on big turns is a good time to buy back. ”
The level quoted by many traders is $ 9,650. When CME closes over the weekend, there is a gap between CME Bitcoin futures market and other exchanges. The $ 9,650 gap has been in place since July.
When it comes to questions about the gap and the potential for BTC to fall into it, Wu said he could move on. This is without:
“I am also interested in the gap between managers to fill long positions with high liquidity. The whales on the derivatives exchange have enough control to make this happen. ”
A problem that is coming soon is that NVT is still hovering at 81.5. When NVT stayed above 70 in previous market cycles, it was a local high.
Some indicators in the chain show an optimistic trend in the medium term, but some indicate declining speed in the short term.
$ 8,800 – strong support, a major correction is unlikely
As Cointelegraph previously reported, traders do not expect the price of bitcoin to fall by 50% as it did in March.
Su Zhu, CEO of Three Arrows Capital, confirmed that the probability of Bitcoin falling to $ 5000 is now less likely than the probability of Bitcoin going to $ 100. He wrote:
“I’m really surprised at the strength shown at 10k, and the probability means that the probability of 100k is greater than 5k.”
Bitfinex has a large number of whale orders priced at $ 8,800. Since whales tend to offer the lowest levels of support to provide liquidity, it is likely to fall to $ 8,000 highs. But a fall in the Black Swan market during this period, as BTC managed to protect $ 10,000 for a long time, is unlikely.