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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.
Updated Sep 14, 2021, 9:57 a.m. Published Sep 18, 2020, 12:09 p.m.
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Bitcoin is again looking to establish a foothold above $11,000 on Friday, although the technical charts are anything but stridently bullish.
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- 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 , bitcoin cash (BCH) and litecoin 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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Bitcoin could fall to $10,000 as U.S. recession risk builds, Mike McGlone says
McGlone links bitcoin’s downturn to record U.S. market cap-to-GDP levels, low equity volatility and rising gold prices, warning of potential contagion into stocks.
What to know:
- Bloomberg Intelligence strategist Mike McGlone warns that collapsing crypto prices and a potential bitcoin slide toward $10,000 could signal mounting financial stress and foreshadow a U.S. recession.
- McGlone argues the post-2008 "buy the dip" era may be ending as crypto weakens, stock market valuations sit near century highs relative to GDP, and equity volatility remains unusually low.
- Market analyst Jason Fernandes counters that a drop to $10,000 bitcoin would likely require a severe systemic shock and recession, calling such an outcome a low-probability tail risk compared with a milder reset or consolidation.
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