This week, bitcoin jumped higher. Yesterday, the digital asset even briefly hit $11,000. However, BTC slowly made its way below $11k today but is still trading above $10,800.
Going forward, $11,600 is “strong resistance” for bitcoin, and if the digital asset closes above this level, while ETH/BTC is below 0.036, “btc turbo moons and alts turbo nuke,” said trader CryptoGainz. On the other hand, the time for altcoins to enjoy a rally will be Ether surging.
if btc closes above 11.6k and eth/btc is below 0.036 when it happens i think btc turbo moons and alts turbo nuke pic.twitter.com/lnJTmw6PC7
— CryptoGainz (@CryptoGainz1) September 16, 2020
Interestingly, Bitcoin hodlers are persistent, and those who have been holding their BTC for over a year continue to make new highs. Only about 36% of the Bitcoin supply has moved in the last year.
Also, on-exchange supply is approaching 2-year lows after seeing a spike in August.
First Buy Signal Since March
The good thing is technical indicators suggest bitcoin is ready for a breakout.
According to the GTI Global Strength Indicator, Bitcoin has flashed its first buy signal since March. At that time, the coronavirus induced crash saw the digital asset falling to $3,800 in one of its worst pullbacks.
But bitcoin recovered fast from that fall, rallying 200% over the next five-month period. Currently, BTC is up over 48% YTD.
Other gauges suggest that for a subsequent rally, the flagship cryptocurrency needs to break above $12,000 to see new highs for the year.
“The price of Bitcoin is reflective of the belief that Bitcoin is a hedge against the overall global economy,” Steve Ehrlich, CEO, and co-founder of Voyager Digital, told Bloomberg. “Bitcoin is extremely resilient and as it gains more and more adoption, in conjunction with better regulations suited to support Bitcoin, it continues to demonstrate its position as a reliable store of value.”
Herd is Coming
Since late July, the leading digital asset has been ranging between $10,000 and $12,000 amidst the risk-on sentiment. Bitcoin has also been following the US equities, forming a short-term correlation with them.
The crypto king has also seen greater institutional participation; just last month, Fidelity Investments launched its first institutional bitcoin fund.
This week, the big news came in the form of publicly listed MicroStrategy, adding more BTC to its reserves.
“The herd is coming. Slower than I once thought, but the future is now. Buy Bitcoin. Learn and invest in DEFi. 2021 these old guys are in. So beat them to it,” said Galaxy’s Mike Novogratz.
Today Wyoming became the first state to approve a banking charter for digital assets. This will allow those using digital assets, like cryptocurrency, to access reliable financial services, protect consumers, and allow businesses a way to safely hold digital assets.
— Governor Mark Gordon (@GovernorGordon) September 16, 2020
According to Nigel Green, founder and CEO of deVere Group, the key characteristics of bitcoin are its fixed supply and decentralized, distributed, and immutable transactions, which are “highly attractive for investors in an uncertain but increasingly digitized, tech-driven world.”
“It has already earned it the label ‘digital gold,’ and I believe its status in this regard will grow exponentially over the next year or two,” he said.