Despite Pushing to $11,000, Heres Why Bitcoin Could Soon Reverse

Thursday 17 September 2020, 12:17 PM AEST - 4 days ago

Bitcoin has been pressing higher despite weakness in the altcoin market. Seemingly rallying off strength in legacy markets, the leading cryptocurrency on Wednesday morning shot to a price just shy of $11,000.

As of this articles writing, BTC trades for $10,970, far above the price points it was trading at just days ago.

While this price action is undoubtedly positive, there are some technical and on-chain signals suggesting a bearish reversal is nigh.

Bitcoin Could Reverse as Key On-Chain Signal Flashes

Blockchain analytics firm Santiment posted the tweet seen below on September 16th. It shows that according to its data, there has been a significant spike in idle BTC changing hands, suggesting a long-term holder or whale is looking to use his coins.

While it is unclear what the user(s) plan to do with their coins, such on-chain shifts purportedly signal trend changes:

With this latest $BTC token age consumed spike, the largest in nearly 5 months (since Apr 29th), we are at a very important moment with #Bitcoin on the cusp of breaking $11k again. This metric typically indicates an imminent price direction shift.

With this latest $BTC token age consumed spike, the largest in nearly 5 months (since Apr 29th), we are at a very important moment with #Bitcoin on the cusp of breaking $11k again. This metric typically indicates an imminent price direction shift. https://t.co/lM9mVfRRrY https://t.co/burSeSLObF

— Santiment (@santimentfeed) September 16, 2020

Bitcoin reversing from current levels would mark a bearish reversal of the ongoing rally, not a continuation to the upside.

The sentiment put forth by Santiment is similar to that mentioned by a number of technical analysts.

As reported by NewsBTC previously, analysts think that the ongoing BTC rally could end at $11,000-11,200. One trader cited the chart below, which shows that the region fits with ...

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