Why Bitcoin Claiming This Crucial Level Will Set the Stage for a Move to $11,000

After soaring to $ 8,800 on Thursday, Bitcoin has made a slight recovery to $ 9,300, bouncing off this week’s shocking rumor that Satoshi Nakamoto is liquidating his coins.

While it’s too early to say whether or not BTC is in a full-fledged bull market, a prominent trader says Bitcoin setting a specific technical level will pave the way for an increase to $ 11,000.

Bitcoin recovery depends on one important level

While Bitcoin has surged about 5% from its lows earlier this week, the cryptocurrency remains below a key support level: $ 9,500, which has served as the inflection point several times in recent months.

According to a popular cryptocurrency and currency trader, if BTC manages to close above the level on a daily timeframe, it will confirm upward.

“Bitcoin found support on a daily basis and maintains its upward trend. Red block is key for me, if we reject from there it will confirm distribution above the March high and I expect much lower. If we can win the red block, I look forward to withdrawing to $ 11k, ”he wrote.

Bitcoin chart from cryptocurrency trader / analyst Mayne, using @TraderMayne on Twitter.

Related Read: Crypto Facts: Satoshi Is Not Dumping Its Bitcoin, China ‘Bans’ Cryptocurrency Mining

Can BTC do it?

Because the $ 9,500 interest is emphasized, it’s a logical place to float if Bitcoin can – if BTC can hold $ 9,500.

The technical and fundamental signs say the cryptocurrency can do that, a number of analysts have said in recent days.

Mike McGlone, senior commodity strategist at Bloomberg Intelligence recently identified three fundamental trends indicating that Bitcoin will trade over $ 10,000 soon, confirming the technical requirement for the analyst’s bullish upside in the first-mentioned section. The trends are as follows:

  • There is an increasing number of active BTC addresses, indicating continued adoption.
  • There is a record amount of open interest in Bitcoin futures on the CME.
  • Grayscale Investment’s assets under management have risen to a record high.
Related Read: No, China Does Not Ban Bitcoin Mining: Chinese Crypto Insiders

In addition, starting crypto analysis

Glassnode noted on May 18 that the Puell Multiple – the USD value of BTC spent per day on the one-year moving average of the same metric – recently reached a critical level.

Chart of Bitcoin's Puell Multiple (on a macro scale) from crypto analysis company Glassnode

Puell Multiple chart of Bitcoin (on a macro scale) from crypto-analysis company Glassnode

As the graph above shows, this macro soil found every time this chain chain entered the green zone.

Featured Image from Shutterstock

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