BTC bulls are doubling their gains aiming to raise it up to $ 11,000, with a further step above 11,800, and whales are increasing their holdings in anticipation of a new rally.
The upward trend has momentum
The Bitcoin price broke through weekend resistance at $ 11,600, setting off a long-awaited rally to $ 12,000. The enviable price movement seems to have confirmed the triangle breakout previously discussed by the FXStreet team. By the end of the Asian session on Tuesday, the flagship cryptocurrency is trading at $ 10,782. Slightly above the overall price level, BTC is meeting resistance at the 50-day simple moving average.
The daily chart of BTC / USD
A broader view of the currently developing uptrend suggests that BTC may soon break above 11K, but first the resistance at 11,800 should drop. Meanwhile, the relative strength index (RSI) almost crosses the midline. In other words, optimism regarding BTC seems to be growing. If this indicator remains in the overbought area, the optimistic mood will be fixed. In addition, trading above the 50-day SMA will provide a boost for the cryptocurrency.
Analyzing the other side of the picture
While shorter timeframes indicate that BTC will rise to highs above $ 11,000 and eventually to 12,000, it is worth mentioning that the weekly chart still highlights the impact of the double-top model. Simply put, Bitcoin may still be under the influence of a bearish model, which negates the desire for a 12K profit.
BTC / USD weekly chart
However, bulls should make sure that the price remains above the support of the uptrend line. Otherwise, a break below this level may encourage sellers to double their positions. The divergence of the moving average convergence (MACD) already shows that sellers can change the situation. The indicator not only stopped in recovery, but also the emerging bearish divergence indicates that sellers ‘ positions are growing.
Bitcoin on-chain analysis
IOMAP IntoTheBlock highlights weak selling pressure at $ 10,775–11. 084. Previously, 336,340 addresses bought 261,680 BTC in this zone. If the bulls manage to turn this area into support, the next rendezvous will be 11,412 and 11,740, a zone where 1.23 million addresses bought 827,480 BTC. Another jump may not tame the largest cryptocurrency, as the $ 12,000 target will be quite conservative.
Bitcoin iomap chart
Based on IOMAP metrics, there are only 17,370 “with money”addresses. This means that the initial support between $10,756 and $10,766 is not strong enough to hold Bitcoin if a break above $ 11,000 is delayed. The asset will be forced to seek refuge in the range of $ 10,756 to $ 10,447.
The increase in new addresses
On the other hand, the number of new addresses in the network has increased significantly. For example, IntoTheBlock data shows that the number of new BTC addresses increased from 396,680 on September 13 to 530,810 on September 14. The graph also shows the growth of the cost of the PTS as the addresses grow, which is likely to maintain the upward trend.
Chart of new BTC addresses
According to Santiment, a leading online data analysis platform, whales that own between 1,000 and 10,000 coins have been actively buying them in large volumes since September 8, usually in a certain direction. In this case, Bitcoin’s potential for growth increases as whales add more coins to their holdings.
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