Bitcoin Nears $9k as Many Increase BTC Holdings
Following a strong move on Sunday night, bitcoin price action has remained bullish – with the fundamentals looking correspondingly strong.
Bitcoin is closing in on the $9,000 mark: almost three times its low of $3,122 (Bitstamp Dec 2018) for this cycle. This is its fourth week of solid gains. In six months, the crypto markets have staged a spectacular turnaround – and really only two months since Aprils breakout signalled the end of the bear trend.
Bitcoin has ignored all previous resistance levels, cutting through $6k (which, given the activity there in 2018, could have proven very tough to crack) in one swift movement and surpassing numerous other expected areas of resistance in its recent parabolic run. At the time of writing it has put in a high of $8,939 (Bitstamp) and appears to be consolidating in a bull flag – a signal that another significant move higher may be on the cards.
Should that flag break upwards, it might take the price of bitcoin into the $9,500 zone, where we would again expect to see significant resistance. The $10k mark also offers a psychological barrier, and it would be surprising if traders did not sell there in the short term. At the same time, bitcoin’s recent indifference to major resistance zones must caution again assuming anything.
0.1 BTC holdings at a high
As if to confirm the underlying interest in bitcoin, above speculative pressure alone, the number of addresses with BTC holdings of at least 0.1 BTC has hit an all-time high. This suggests that bitcoin’s distribution is improving, instead of being concentrated in a smaller number of large wallets. Coinmetrics co-founder Nic Carter tweeted an image showing addresses containing 0.1 BTC or more had topped their previous high (seen at the end of 2017) and now numbered around 2.7 million. Active addresses also continue to trend upwards, though are not yet at their 2017 highs.
Meanwhile, crypto analyst Josh Rager tweeted:
$BTC: 3-Day Super Guppy Flipped Green
I’ve been waiting for this for weeks to confirm the bull trend
While the 1-Day Guppy can give fake-outs, the 3-Day is a nice signal for continuation and that dips are buying
The last time the 3D flipped green it led to a 25 month uptrend
The ‘super guppy’ is an indicator composed of several exponential moving averages (EMAs) bundled into one. It is used to show the fluidity and development of bitcoin price action.