Cryptocurrencies

Bitcoin Rises Back to $11K Despite Signs of Indecision in the Market

Bitcoin is again looking to establish a foothold above $11,000 on Friday, although the technical charts are anything but stridently bullish.

  • The leading cryptocurrency by market value is trading just over $11,000 at press time, having found bids below $10,800 on Thursday, according to CoinDesk’s Bitcoin Price Index.
  • Buyers, however, have been struggling to keep prices above $11,000 over the last few days.
  • The cryptocurrency clocked highs of $11,104 and $11,050 on Wednesday and Thursday, respectively, but printed a UTC closing price below $11,000 on both occasions.
  • Notably, bitcoin created a doji candle on Thursday, as it swung both ways before ending the day on a flat note.
  • A doji shows both buyers and sellers are not willing to lead the price action.
  • However, new investors are entering the market at a faster pace and one may expect bitcoin to post sustainable gains above $11,000.
  • On the other hand, on-chain analyst Cole Garner believes the recent spike in bitcoin outflows from miner wallets to exchanges is a cause for concern for traders expecting a continued price recovery.
  • According to data source Glassnode, 1,113.85 BTC were transferred to exchange wallets from miner wallets on Sept. 13 – the biggest single day outflow since December.
  • An increased supply of bitcoin moving onto exchanges suggests increased selling pressure.
  • So far, however, bitcoin has largely remained resilient and is up 6% this week.
  • This may have been helped by investors moving money out of alternative cryptocurrencies and into bitcoin, according to Patrick Heusser, a senior cryptocurrency trader at Zurich-based Crypto Broker AG, told CoinDesk in a Twitter chat. 
  • Indeed, major alternative cryptocurrencies such as ether (ETH), bitcoin cash (BCH) and litecoin (LTC) have depreciated by 2% to 5% against bitcoin in the past seven days. Chainlink’s LINK token is down 17%, according to data source Messari.
  • Should the latest indecisive price action end with an upward move, the focus would shift to the next hurdle at $11,200. That level served as strong support in August.
  • Thursday’s low of $10,765 is the level to defend for the bulls.

Also read: Bitcoin ‘Young Investment’ Wallets at Highest Level Since February 2018

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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CoinDesk is the leading digital media, events and information services company for the crypto asset and blockchain technology community. Its mandate is to inform, educate and connect the global community as the authoritative daily news provider dedicated to chronicling the space. Founded in May 2013, CoinDesk reaches millions interested in blockchain technology thru its website, social media, newsletters, podcasts and video. CoinDesk created the original reference rate known as the Bitcoin Price Index which is widely sourced in the media including The Wall Street Journal, Financial Times, CNBC and many others on a daily basis.

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