• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Changelly
  • Price table

Crypto News PRO

From the world all news

  • Home
  • News

Despite Pushing to $11,000, Here’s Why Bitcoin Could Soon Reverse

Written by:
Aeon Flux
Published on:
17 September 2020
Thoughts:
No comments yet

Bitcoin has been pressing higher despite weakness in the altcoin market. Seemingly rallying off strength in legacy markets, the leading cryptocurrency on Wednesday morning shot to a price just shy of $11,000.

As of this article’s writing, BTC trades for $10,970, far above the price points it was trading at just days ago.

While this price action is undoubtedly positive, there are some technical and on-chain signals suggesting a bearish reversal is nigh.

Related Reading: This European Crypto Exchange Was Just Hacked for $5 Million

Bitcoin Could Reverse as Key On-Chain Signal Flashes

Blockchain analytics firm Santiment posted the tweet seen below on September 16th. It shows that according to its data, there has been a “significant spike in idle BTC” changing hands, suggesting a long-term holder or “whale” is looking to use his coins.

While it is unclear what the user(s) plan to do with their coins, such on-chain shifts purportedly signal trend changes:

“With this latest $BTC token age consumed spike, the largest in nearly 5 months (since Apr 29th), we are at a very important moment with #Bitcoin on the cusp of breaking $11k again. This metric typically indicates an imminent price direction shift.”

Bitcoin reversing from current levels would mark a bearish reversal of the ongoing rally, not a continuation to the upside.

The sentiment put forth by Santiment is similar to that mentioned by a number of technical analysts.

As reported by NewsBTC previously, analysts think that the ongoing BTC rally could end at $11,000-11,200. One trader cited the chart below, which shows that the region fits with his Fibonacci Retracement analysis; another pointed to the fact that BTC firmly bounced off $11,000-11,200 multiple times in August, suggesting it’s an important level to watch.

Image

ImageChart of BTC’s price action over the past few months from trader NebraskanGooner. Chart from TradingView.com

Related Reading: Here’s Why This Crypto CEO Thinks BTC Soon Hits $15,000

Long-Term On-Chain Trends Are Still Abundantly Positive

Short-term on-chain trends may signal caution for cryptocurrency traders. Investors, though, should not be as worried as long-term on-chain trends remain abundantly positive, suggesting a steady bull run is likely in the years ahead.

Blockchain data analytics firm CryptoQuant shared the table below on September 16th.

It shows that a swath of leading on-chain indicators — from metrics of miner health to exchange flows and stablecoins — signal it’s time to buy Bitcoin. Some indicators, such as ones focused on stablecoins, signal a “Strong Buy” for BTC, CryptoQuant indicates.

Related Reading: It’s “Logical” for Ethereum To Reject At Current Prices: Here’s Why

Featured image from Shutterstock Price tags: xbtusd, btcusd, btcusdt Charts from TradingView.com Despite Pushing to $11,000, Here’s Why Bitcoin Could Soon Reverse

Tags: bitcoin pricebtcusdBTCUSDTxbtusd

Categories: Bitcoin, Ethereum, News

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

Search in the news

Translate:

Earn up to 5% every 10 days with Aeon Flux Coins

Categories

  • Bitcoin (2,453)
  • Ethereum (1,652)
  • News (5,160)

Recent Posts

  • How To Make Money Easily In NFT In 2022 17 June 2022
  • Artificial Intelligence And Cryptocurrency 17 June 2022
  • Brace Yourselves, The ‘Crypto Winter’ is Coming… 17 June 2022
  • Crypto Market Crash? 17 June 2022
  • Largest Airline Adopts Bitcoin As A Payment Method For Tickets 17 June 2022

Archives

  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020

© 2015-2020 Crypto News PRO
All Rights Reserved. Powered by IWG Agenzia Web