Bitcoin (BTC) price finally exceeded $ 11,000 after 13 days in a narrow range. This time, however, market dynamics are different because ETH and most decentralized financial tokens are going down.
Since Bitcoin rose to $ 11,024 on Coinbase on September 16, Ether, DeFi tokens and most altcoins have been the same. The outstanding performance of Bitcoin and the rest of the market makes the continued growth of BTC unique.
Daily Bitcoin price chart
Some traders suggest that profits from Ether and DeFi tokens be channeled to bitcoins. Others have suggested that the wholesale purchase of MicroStrategy BTC increased the spot prices of the dominant cryptocurrency. MicroStrategy bought $ 175 million in BTC, which will add $ 7 billion to the market value of BTC, said network analyst Willie Wu. In the spot market, demand above $ 100 million could lead to a decline of more than 3%. Denis Vinokurov, head of research at Bequant, a digital real estate exchange and brokerage, told Cointelegraph:
“Any immediate concern about the sustainability of some DeFi-based offerings is likely to provide some support for Bitcoin. Therefore, ETH and BTC may remain in a downward trend. However, this market appears to be overly focused on DeFi and ignores the positive changes that have taken place. This indicates that the transition to version 2.0 has been moving in the right direction in recent days.
But after Bitcoin broke above $ 10,500, a level that served as strong resistance, the sentiment of traders is mixed. Some traders believe that Bitcoin will face a rejection of $ 11,000. Others expect sustained growth above the $ 11,000 value of optimistic performance along the chain.
Bitcoin Bullish Case
Bitcoin’s short-term bullshit is a new test of the resistance level of 11,000 dollars without sharp rejection. Traders generally expect Bitcoin to enter the $ 11,000 to $ 11,300 resistance range. However, given its historical significance, technical analysts expect a strong pullback after reaching this price point.
If Bitcoin’s price remains relatively stable after rising above $ 11,000, it will strengthen its bullish state. In the medium term, there are two main levels of BTC: $ 13,000 and $ 16,000. The $ 13,000 level is an area of resistance that Arky CEO Katy Wood has previously discussed. The $ 16,000 level is one of two currently open CMEs, the other is $ 9,650.
During a podcast hosted by Ark Invest in August, Wood said $ 13,000 would represent “very little” resistance to a new height. Given that the resistance between $ 13,000 and $ 20,000 is low, the probability of a sustained strong rally increases. But on the way to $ 13,000 are two critical resistance levels of $ 11,000 and $ 12,000.
Long-term chain indicators appear to be useful for Bitcoin, according to Ki Yong Joo, CEO of CryptoQuant. Referring to the data, he said: “The time has come, gentlemen,” which suggests that a long-term upward trend may trigger a spark. Series indicators show that various important data points indicate “buy” or “strong buy”.
Bitcoin on-chain indicators indicate intense buying and selling
In particular, indicators regarding stable currency and mining indicate a long-term bullish trend for Bitcoin. This shows that there is an abundance of margin capital in larger stable currencies. Since stack coins such as Tether (USDT) make up the majority of the daily BTC volume, this shows that large amounts of capital are ready to enter the cryptocurrency market.
Bitcoin mode in the near future
On September 8, before the current Bitcoin price rally began, a trader known as Edward Moura said that there were two short-term CMEs worth $ 10,620 and $ 9600, but it is not known which one will be filled first. He suggested that he would probably fill the biggest hole first, while another might follow:
The CME chart has a new gap of 10,620, and most gaps (~ 90%) typically fill in a few days, with the exception of time-consuming (10%) exceptions (like the $ 9.6 gap since July). It makes sense to assume that the highest gap in 10620 is filled in here first, and then see how things go. ”
In a subsequent analysis, Mora said: “Now let’s see if the bottom is filled.” Technically, the increase to the resistance level of 11,000 dollars and the fall to the support level of 9,600 dollars is a healthy minor correction for BTC.
The 9600 CME gap remains vacant
Data from the analyst firm CryptoCompare show that the average cost of bitcoin transactions has stabilized.