- Bitcoin price is trading closer to a potential triangle breakout with eyes set on $11,000.
- Bitcoin flips the Russian ruble to become the sixth-largest currency in the world.
- On-chain analysis confirms the possibility of an uptrend awaiting Bitcoin in the short term.
Bitcoin price is settling above the short term 50 Simple Moving Average, perhaps this a bullish signal. Meanwhile, the flagship cryptocurrency upside is capped under $10,400. Moreover, it is obvious to spot the consolidation within the Bollinger Bands. As the bands get even more constricted, Bitcoin nears a squeeze that, without a doubt, will eventually result in high volatility and a significant breakout.
BTC/USD 1-hour chart
 (49)-637354901534161002.png)
The bellwether digital asset is trading above the middle Bollinger Bands layer (currently forming a confluence with the 50 SMA mentioned earlier in the hourly range). If the resistance at $10,400 is turned into support, we can expect BTC to make a remarkable move upwards.
Bitcoin beats the Russian ruble to become the sixth-largest currency in the world
The king of cryptocurrencies, Bitcoin, has in the past decade grown in popularity and adoption. Besides, being the most popular crypto globally, a survey indicates that BTC is now the sixth-largest currency. BTC left the Russian ruble (RUB) in the dust and made position six among the world’s largest currencies. The US dollar still ranks as the world’s largest currency with $1.95 trillion notes and circulation coins. The euro (EUR) comes second, having 1.38 trillion coins and notes in circulation. The third, fourth, and fifth places were scooped by the Chinese Yuan (CNY), Japanese yen (JPY), and the Indian rupee (INR) in that order.
Bitcoin is quickly growing to become a mainstream currency and digital asset. As people around the world discover and adopt Bitcoin, its value will continue to grow. The maximum supply of 21 million coins means that BTC is a scarce currency, a feature that could make it tremendously valuable in the future.
Bitcoin on the verge of a massive breakout
Bitcoin is still trading at the apex of the symmetrical triangle discussed in detail on Friday. A break above this triangle would boost Bitcoin above the psychological resistance at $11,000.
Note that the Moving Average Convergence Divergence (MACD) has been growing steadily from the dip to -299 in the first week of September. Although the MACD is a lagging indicator, it can show the general trend of the asset. For now, the indicator reveals that BTC’s uptrend has fuel and is bound to continue.
BTC/USD 4-hour chart
 (50)-637354902496212572.png)
On the other hand, the daily range shows that the above symmetrical triangle could confirm a bear flag pattern, which means Bitcoin’s upward case would be jeopardized. Therefore, it is essential that bulls seize the opportunity and quickly push that breakout to $11,000. Otherwise, another rejection at $10,400 could prematurely end the uptrend and pull BTC into a spiral towards $9,000.
BTC/USD daily chart
 (51)-637354907174022064.png)
Bitcoin fundamental analysis
According to the on-chain data provided by IntoTheBlock’s IOMAP, the immediate supply zone from $10,389 - $10,698 is not rock-solid. Previously, 432,190 addresses purchased a sum of 509,570 BTC in this range. A break above the area would pave the way for gains to the next formidable hurdle at $11,316 - $11,625, a region where 1.29 million addresses bought 690,810 BTC.
On the downside, the prevailing support between $10,369 and $10,389 is not strong enough to hold BTC for a long time. Note that the previous demand in this zone was only 18,120 BTC from 32,150 addresses. Bitcoin is hanging at the edge of a cliff, could also push below the most robust support at $10,060 - $10,243, where 1.93 million addresses are profiting from the 895,520 BTC purchased.
IntoTheBlock IOMAP chart
-637354904329846303.png)
From the above analysis, we can tell that Bitcoin is fundamentally ready for an upward move, hence confirming the symmetrical breakout. However, traders must be aware that a bearish flag pattern could come into the picture, thereby sabotaging the uptrend. On the positive side, the IOMAP shows demand between $10,060 and $10243 can stop losses and nullify any possibility of a breakdown to $9,000.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Lukas Enzersdorfer-Konrad, Bitpanda deputy CEO: “Crypto needs Gary Gensler gone”
Lukas Enzersdorfer-Konrad is the deputy CEO at Bitpanda, a broker based in Europe with more than five million users. At the European Blockchain Convention held in Barcelona, the executive shared with FXStreet his views on the current state of the crypto industry and its regulation.
Bitcoin still consolidates despite positive spot ETFs demand
Bitcoin (BTC) trades slightly up, around $64,000 on Thursday, following a rejection from the upper consolidation level of $64,700 the previous day. BTC’s price has been consolidating between $62,000 and $64,700 for the past week.
Why is ONDO’s price outlook bullish?
DefiLlama data shows that Ondo TVL reached a new ATH of $613.75 million. Ondo’s Supply Distribution metric shows whale accumulation. On-chain data shows that ONDO’s daily trading volume is rising, and the supply of exchanges is decreasing.
Maker price eyes a rally on technicals and on-chain metrics
Maker trades above $1,500 on Thursday, suggesting a potential rally as technical indicators show bullish divergence. This positive outlook is reinforced by MKR’s Exchange Flow Balance, which shows a negative spike, indicating growing investor confidence in the platform.
Bitcoin: Fed-led rally could have legs towards $65,000
Bitcoin is poised for a second consecutive week of gains, supported by the recent 50-basis-point cut in interest rates by the Federal Reserve. Bitcoin broke above several key technical resistances this week, signaling a rally continuation.
Five best Forex brokers in 2024
VERIFIED Choosing the best Forex broker in 2024 requires careful consideration of certain essential factors. With the wide array of options available, it is crucial to find a broker that aligns with your trading style, experience level, and financial goals.