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.
Support of key indicators #BitcoinThe ability to hold over $ 10,000. The increasing number of addresses used, record high open futures and assets under management (AUM) of GBTC support the digital version of the value of gold and the comparable direction of the crypto as the advancing metal. pic.twitter.com/jMWw6Cz97u
– Mike McGlone (@ mikemcglone11) May 21, 2020
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.
Puell Multiple chart of Bitcoin (on a macro scale) from crypto-analysis company Glassnode
Featured Image from Shutterstock
