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Home News Bitcoin News

Bitcoin price clings to $10,000 as BTC whales sit on the fence

Gurpreet Thind by Gurpreet Thind
September 8, 2020
in Bitcoin News
5 min read
Bitcoin price clings to $10,000 as BTC whales sit on the fence
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Bitcoin price has been barely clinging to the vital $10,000 level – but for how long? The prolonged bull-bear battle will soon reach a climax as investors worry about the broader selloff in the crypto market. on the contrary, there can be a short-term relief rally also in the works taking Bitcoin price near the stubborn $12,000 resistance.

Bitcoin price clings to $10,000 as BTC whales sit on the fence 1
Cryptocurrency heat map by Coin360

As Bitcoin price briefly breaks $10,000 support to touch the $9,940 level with downward indications on the hourly charts, traders can’t decide how low it may go. Massive sell-offs in the altcoin realm is sending bearish signals to the BTC/USD pair. Despite several short bursts below the $10,000 mark, bulls have rescued it with renewed buying activity.

Markets are waiting with bated breath whether the next few days would lead to a relief rally or is there further consolidation on the cards. The low volume indicates that BTC/USD pair is waiting for confident signals for large investors and traders to come into play.

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Bitcoin price chart can’t shake off consolidation

The hourly BTC/USD chart is not giving clear signals to the day traders. Currently, the pair is trading at 10,040 with a neutral rating on most technical indicators. The congestion of bulls and bears is providing solid support to the BTC/USD pair.

Bitcoin price clings to $10,000 as BTC whales sit on the fence 2
Bitcoin price chart by TradingView

Further below, there is strong support between $9,500 to $9,600 level to prevent any aggressive decline underneath. On the hourly charts, the first resistance for bulls to cross lies at $10,175 followed by another at $10,290. On the downside, there’s support at $8,750 in case there’s aggressive selling or profit booking.

The MACD indicator has plenty of room to run downstairs on both hourly and daily charts thereby contributing to the bearish onslaught. Moving averages, simple and exponential, are intermingled on the hourly charts and can’t be taken seriously right now. However, they do signal a short-term rebound for Bitcoin price.

Bears seem to be losing breath as per the DMI indicator. The selling pressure, if any, may not last long considering there’s a strong bull case scenario building up due to prolonged inaction. RSI is in neutral territory. So, technically Bitcoin price isn’t sending any immediate trend reversal signals that day traders can exploit.

BTC whales are ready to buy the dip

As per the latest on-chain metrics, Bitcoin whales and large crypto investors are using the current price correction opportunity to accumulate Bitcoin. As price hovers around the $10,000 mark, there may be renewed buying interest from the institutional investors as well to push the pair into bullish territory.

As per Santiment, on-chain data reflects that cryptocurrency exchanges are reporting higher stablecoin inflow. It means that traditional investors are looking to cash in on the latest BTC sell-off and further correction in BTC/USD pair can start a buying spree. Historically, the inflow of stablecoins into exchanges has been linked to Bitcoin price movements.

https://t.co/GZ2vVzZH2Y

1) There is a definitive relationship between the exchange-related activity of top #stablecoins and $BTC's short-term market action. 💵🤝🪙 The major rise in $USDT being moved to exchanges over the past four days has coincided with $BTC rapidly falling pic.twitter.com/pj5Do0zcCf

— Santiment (@santimentfeed) September 8, 2020

The $10,000 level has been tested continuously for the past few days. The thin liquidity on the Labor day sparked off some wild movements on the hourly charts. This tumultuous period cemented the strong credentials of the $10,000 support. Accumulation of stablecoins in crypto exchanges by large investors goes on to show that any further correction in Bitcoin price can trigger a buying spree.

The $10,000 level is psychologically and technically a pivotal point. There’s a range of support points below the $10,000 level running all the way up to $9,000 – providing enough buying opportunities to the bulls. The movements in the US dollar and Federal Reserve policy continue to impact Bitcoin price. The massive money printing and perennial low-interest rates will only support the macro cull case scenario for BTC/USD pair.

The CME gap data indicates a double-bottom formation

The psychological $10,000 support is ripe to serve as a bounce point for the relief rally. Sellers confidently broke the $11,200 region thereby creating a strong resistance. The two prominent CME gap areas are $9,650 and $9,900. Both gap points remain partially filled.

The volatile BTC/USD pair created an additional CME gap around the $10,450 region. Historically, it is highly likely that this gap is filled soon by short-term bulls. Traders eye gaps to track price movements thereby indicating a short-term price prediction. The double bottom formation indicates that a fresh lower low is on the cards which in turn can indicate an upcoming bullish divergence.

Bitcoin price clings to $10,000 as BTC whales sit on the fence 3
Bitcoin price chart by TradingView

However, Bitcoin price has not displayed any aggressive bullish behavior to bounce from the $10,000 level. Short term bounces can help create a support region from where higher lows can emerge. But trader Alan Masters points out that consecutive lows can signal a bearish momentum taking the Bitcoin price to $9,100.

Buying on the dips has been the flavor throughout 2020

Even though Bitcoin price is down $2,000 from this year’s highs, 2020 has been all about the macro bull rally. The crypto king’s performance during the Coronavirus pandemic has earned it safe-haven laurels. The current price action is merely a pause in the macro bull rally that took Bitcoin price past $12,000.

Investors are very much aware of the volatility in the crypto market. Thus, they are ready to brace for miniature bear market phases. The trend in BTC/USD pair is very much to the upside. The next leg of the rally will feature institutional investors and Bitcoin whales besides the retail investor. Brief movements below $10,000 will only prove to be buying opportunities.

Disclaimer: The information provided is not trading advice but an informative analysis of the price movement. Cryptopolitan.com holds no liability towards any investments based on the information provided on this page.

Gurpreet Thind

Gurpreet Thind

Gurpreet Thind is pursuing Masters in Electrical Engineering at University of Ottawa. His scholarly interests include IT, computer languages and cryptocurrencies. With a special interest in blockchain powered architectures, he seeks to explore the societal impact of digital currencies as finance of the future. He is passionate about learning new languages, cultures and social media.

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