Bitcoin (BTC), the pioneer cryptocurrency, surged towards the local barrier of $11,000 on Thursday. The market produced a natural knee-jerk reaction to an unexpected event from bullish Whales with unclear consequences. BTC/USD had tested the intraday low of $10,532 before the recovery started. Some key technical indicators are pointing to an increase in volatility beyond $10,963 intraday high. Buyers are taking advantage of exhausted bears to ride on an impending breakout as BTC/USD nears $11k handle. At the time of writing, BTC/USD is changing hands at $10,890, up over 2% in the last 24 hours. Bitcoin’s market capitalization settled at $201 billion, while its market share is registered at 58.6%. Bitcoin’s network momentum, a metric that tracks on-chain volume, holds back in recent months. Despite a loss of network momentum, an impending breakout on BTC/USD nears as other on-chain metrics for Bitcoin are still forming bullish signs. In 2020, many transfers take place through Ethereum or exchanges affecting the network momentum metric in a way where it is likely to remain low.
*BTC/USD had tested the intraday low of $10,532 before the recovery started
*Buyers are taking advantage of exhausted bears to ride on an impending breakout as BTC/USD nears $11k handle
*Bitcoin’s network momentum, a metric that tracks on-chain volume, holds back in recent months
Resistance Levels: $11,500, $11,200, $11,000
Support Levels: $10,500, $10,200, $9,800
BTC/USD Daily Chart: Ranging
BTC/USD Daily Chart
From the technical perspective, BTC/USD is shifting within ascending trend line support and this barrier prevented the sell-off today and verified its position of a potent backstop. While the price is still hovering around the daily MA 50 at $10,890, the overall trend stays optimistic. On the flip side, while the midline level of the Relative Strength Index ( RSI) suggests that the market remains sideways in the next few sessions.
A viable shift underneath $10,500 may weaken the initial technical image and fixate on $10,200 in psychological terms. It is enhanced at $10,000 by nearby horizontal support that has served as a powerful barricade since the beginning of May. The September 8 low of $9,800 and the daily MA 200 at $9,500 are closely followed by this support.
BTC/USD 4-Hour Chart: Ranging
BTC/USD 4-Hour Chart
As some key technical indicators point to a rise in volatility beyond the $10,963 intraday high, Bitcoin is poised to launch a breakout from its short-term trading range. The MA 50 and MA 200 are now starting to compress, which typically imply that the trajectory has a significant vertical motion. Consequently, though the pair trades beyond its weekly highs, the bulls of the BTC/USD pair have the upper hand.
As vital support and the gateway for more losses is towards $9,800, the technical review highlights the $10,200 mark. Although trading beyond the $10,500 mark, the BTC/USD pair is only bullish; the main resistance is seen at the $11,000 and $11,200 levels. If the BTC/USD pair exchanges beneath the $10,500 mark, the $10,200 and $9,800 levels can be tested by sellers.
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