Bulls appeared to be favouring Bitcoin (BTC)’s price movement as it continued to ride high on the charts. The largest cryptocurrency by market cap breached a crucial resistance climbing all the way up to $10,869 after surging by more than 7% over the last two days.
Onchain Switches Bullish: Surging Active Addresses
The uptrend seems to have gained momentum as evidenced by various key technicals. For one, Bitcoin’s active address count was hovering close to its previous all-time high seen in December 2017.
This was revealed by CoinMetrics in its latest report, which also noted that the rise of the number of unique active addresses hinted at a rising usage by a “broader set of network participants”. While rising active addresses does not necessitate rising participants as a single user can have multiple addresses, according to the crypto-analytic platform’s report, it is generally considered to be correlated.
Increasing hash power securing the network
According to BitInfoCharts, Bitcoin’s hash rate also reached a fresh ATH with a staunching 150.93 Exahash per second of Hashpower on the 13th of September. The higher the hash power, the more secure the Bitcoin blockchain is, which is yet another crucial indicator of its network health.
Additionally, Willy Woo in a series of tweets, explained that the next directional move over the coming weeks is likely upwards and a “catastrophic dump” in price from is probably not on the cards in the near future. His tweet further read,
“Overall, I’m not expecting any mega dump, some chance of smaller whipsaws in the short timeframes, resistance is teetering. Not a bad time to get in if you’re a spot investor, given the longer-range macro. There’s plenty of buy support below 10k, this is a buy the dip scenario.”
Bitcoin Daily Chart
The above daily chart exhibited an increase of 7.02%. The 50 DMA [Pink] appeared to be resisting an upward price movement to $11,280. However, the 100 DMA [Blue] formed a support price of $10,344. This essentially indicated that despite the persistent bearish pressure, BTC’s attempt to the coveted $11,000-level has not been overturned.
Additionally, the spike in RSI, in tandem with BTC’s price, above the 50 median line depicted a sentiment of rising buy pressure among the traders which could further propel the prices higher. If this materializes, BTC manages to surge beyond $11,000, it could target another key level of resistance at $11,803.