- BTC has managed to stay above $10,000 for 65 days.
- Bitcoin’s daily confluence detector shows an immediate moderate resistance level at $10,850.
The premier cryptocurrency remains limbo as it trends between $10,825 and the SMA 20 curve. While the MACD shows sustained bullish momentum, it seems unlikely that the buyers will be able to push the price above the $11,075 resistance line and the SMA 50 curve.
BTC/USD daily chart
Another interesting thing to note in the daily chart is that the price has remained above $10,000-level since July 28, 2020. That’s 65 days and counting, making this the longest stretch that BTC has been trending above the $10,000. While the price may have briefly dipped under $10,000 in this period, it never started or ended a day below $10,000.
Before this, the longest stretch above $10,000 happened at the end of 2017 and lasted for 62 days. Analyst Jason Deane attributes this new record to the “MicroStrategy effect.”
Price had just passed the $10,000 mark when their first acquisition announcement came on August 11, and the impact of this bold, ground-breaking move by Michael Saylor [Microstrategy CEO] was to drive substantial confidence and credibility into the asset.
Plus, Bitcoin’s price volatility has been relatively stable during this period. In one of the coin’s previous runs, the price fluctuated by 53%. In this run, however, it only moved 20%, signifying stability.
BTC/USD 4-hour chart
The bulls found support at the $10,715 support line and jumped up to $10,830, over two sessions. In the process, the price ripped through the SMA 20, SMA 100 and SMA 200 curves. The MACD shows that the market momentum is on the verge of reversing from bearish to bullish, following the positive price action.
After failing to get past the $10,900 resistance level, the 4-hour price has charted lower highs. The bulls will ideally want to reverse this trend by breaking above the $10,845 resistance line.
Bitcoin on-chain metrics
Now, that we have seen the BTC price action, let’s see how the overall network is fairing. A healthy network usually leads to healthy price action.
#1 New addresses entering
IntoTheBlock’s “Daily Active Addresses” model shows that the number of new addresses created on the Bitcoin network topped-out on September 1 at a high of 572,250 addresses per day is calculated 3-month trailing average. Since then, Bitcoin’s network growth has remained consistent. At press time, 539.450 new addresses were created, up from this Wednesday’s 455,600. This can be considered a bullish sign for BTC.
#2 BTC velocity
Velocity is another great metric that can help us judge Bitcoin’s network sentiment. As per Santiment, velocity shows the average number of times that a single BTC token changes addresses daily. Higher token velocity means that a single token is used more often in daily transactions. On the other hand, a low velocity means that the holder treats the token as a store-of-value and they would rather hold on to it instead of giving it away.
Velocity has an inverse relationship with the price. Lower the velocity, the higher the price. Since September 27, the velocity has dropped from 3.76 to 3.18, which is a good sign.
BTC daily confluence detector
The daily confluence detector is a handy tool that can help us predict future price movements. The price is presently sitting on top of a healthy support stack, $10,700-$10,800. On the upside, BTC faces an immediate moderate resistance level at $10,850.
If the buyers manage to break past the $10,850 level, the confluence detector lacks strong and moderate resistance levels to $12,000. However, as noted earlier, its unlikely that the bulls will have enough momentum to take the price up to those levels.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
Is Altcoin Season here as Bitcoin reaches a new all-time high?
Bitcoin reaches a new all-time high of $98,384 on Thursday, with altcoins following the suit. Reports highlight that the recent surge in altcoins was fueled by the victory of crypto-friendly candidate Donal Trump in the US presidential election.
Shanghai court confirms legal recognition of crypto ownership
A Shanghai court has confirmed that owning digital assets, including Bitcoin, is legal under Chinese law. Judge Sun Jie of the Shanghai Songjiang People’s Court shared this opinion through the WeChat account of the Shanghai High People’s Court.
BTC hits an all-time high above $97,850, inches away from the $100K mark
Bitcoin hit a new all-time high of $97,852 on Thursday, and the technical outlook suggests a possible continuation of the rally to $100,000. BTC futures have surged past the $100,000 price mark on Deribit, and Lookonchain data shows whales are accumulating.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: New high of $100K or correction to $78K?
Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.