- Bitcoin price stalls below $11,000
- U.S. presidential elections in November could prop BTC bulls
- Traders are flowing into Bitcoin
- Michael Saylor lauds Bitcoin as the true digital gold
The Bitcoin price is uncharacteristically tepid despite firm fundamentals. At spot rates, for instance, not only are Bitcoin prices wavy with light trading volumes, but bulls are oscillating below critical resistance levels.
In the immediate term, bulls have to contend with strong liquidation levels at $11,000 and later $11,500. A clear surge past this could be the necessary impetus, a pre-requisite for $12,500 or even a new 2020 highs.
Political uncertainty fanning BTC demand?
Behind this is the uncertainty of U.S. politics. Some analysts say yesterday’s presidential debate was a big win for Bitcoin and crypto.
To some degree, this may be true. Bitcoin has morphed into a store-of-value asset, a vehicle for storing value just like gold.
On-Chain analysis supports Bitcoin bulls
If this is the case, odds of the coin surging in the next month ahead of this contentious presidential election remain high. Already, there are hints of new participants flocking in and positioning themselves for a possible rally.
Willy Woo—an on-chain analyst, said capital flowing to Bitcoin is yet to be reflected in price charts.
We’re seeing a spike in activity by new participants coming into BTC not yet reflected in price, it doesn’t happen often. This is what traders call a divergence, in this case, it’s bullish.
Overall: bullish the next 3 weeks, also bullish over the next 3 months. IMO a good time to build a long term multi-month long position, or deploy new capital if you’re thinking to increase BTC exposure.
Affirming his observation, a parallel analysis by the CEO of GlassNode points out the possibility of traders and speculators positioning themselves for a rally in the immediate term since Bitcoin appears under-valued.
Bitcoin is the true digital gold
Meanwhile, the CEO of MicroStrategy continues with is proclamation.
After doubling down his investment on Bitcoin, he now says the coin is the true digital gold—“growing harder, smarter, faster, & stronger due to the relentless progression of technology.”
Bitcoin price prediction
The Bitcoin price is trading at a narrow range with caps at $11,000. In the last week of trading, the coin is down four percent against ETH but has gained versus the greenback.
From candlestick arrangement, the humongous bear candlestick of Sep 3 still influences proceedings. As long as prices trending within its trading range, sellers are in charge.
Ideally, a sharp close above $11,000 could build the impetus needed to reverse losses of early September.
However, the spike must be accompanied by an uptick in trading volumes preferably exceeding those of Sep 3 and Sep 21 (data from Coinbase).
Losses below $10.500 may spark immediate sell-offs towards $10,000. Even so, strong sell walls between $9,700 and $10,300 are visible in most order books.
BTC/USD technical indicators
Today’s pivot point is at $10,680
Support is between $10,300 and $10,600
Resistance is between $10,800 and $11,100
88 percent of traders are net-long.