This Fundamental Indicator Shows Why Bitcoin Can’t Seem to Break $11,000

  • Bitcoin’s price has entered a consolidation phase as it trades between $10,600 and $10,800
  • The cryptocurrency’s strong uptrend in recent days stalled as soon as it approached $11,000, as the selling pressure at this level has proven to be quite significant
  • Analysts are now conflicted on where it may trend next, as it all depends on whether $11,000 proves to be a surmountable level
  • One analytics firm is now noting that there is one indicator that is providing insight into why BTC can’t seem to break this level
  • They note that the network is currently seeing a “severe lack” of address activity, which points to underlying weakness

Bitcoin has been consolidating ever since bulls were able to push it up towards highs of $11,000. The move to this level earlier this week was promising, but it has since been followed by another prolonged period of sideways trading.

Where the entire market trends in the coming few weeks should depend largely on how it continues responding to the selling pressure that exists here.

How To Get Free Crypto  

If bears take control and push BTC lower, it may not find any strong support until $10,000, with a break below here being grave.

One fundamental metric that may be contributing to this slight weakness is a “severe lack of address activity” – according to one analytics firm.

Bitcoin Consolidates Below $11,000, But Weakness Grows 

At the time of writing, Bitcoin is trading up marginally at its current price of $10,770. This is around the price at which it has been trading at throughout the past several days.

Yesterday, after advancing towards $11,000, BTC faced a sudden inflow of selling pressure that caused its price to slide as low as $10,500 on some trading platforms.

Coinbase Banner  

The decline to these lows was fleeting, but it highlighted the strength of BTC’s near-term resistance, as well as some underlying weakness amongst bulls.

Analytics Firm: Network Activity Flashing Warning Signs for BTC

Analytics platform Santiment explained in a recent tweet that there is currently a severe lack of address activity on the Bitcoin network. This points to underlying weakness amongst the crypto’s buyers.

“Why is BTC continuing to see drop-offs occur whenever we near $11k? Our DAA Divergence model indicates the network is seeing a severe lack of address activity. Today is the 5th most bearish output in the past 6 mths.”

Image Courtesy of Santiment.

The coming few days should shine a light on Bitcoin’s mid-term outlook.

Featured image from Unsplash.
Pricing data from TradingView.

Go to Source
Author: Cole Petersen

Recommended Crypto Services, Products and Strategies:

The first thing any crypto investor needs is is a reliable and secure Crypto Wallet.  Whether you’re looking for an online wallet, hardware wallet, desktop or mobile wallet, Crypto Renegade provides you with all the Best Crypto Wallets in each category.

Best Crypto Wallets Banner

When you’re ready to buy more crypto, or exchange your coins for others, Crypto Renegade’s list of the Best Crypto Exchanges has you covered.  The Crypto Exchanges recommended here offer everything from simplicity and convenience to advanced trading platforms and profit sharing. 

Best Crypto Exchanges Banner

If you want to learn more about the methods and tools that can be used to find Great Crypto Projects, then be sure to check out Crypto Renegade’s strategy for How To Find The Best Cryptocurrency.

Crypto Strategy Banner

For those people that don’t have any money to invest right now, or just want to understand the technology a bit more, you’ll definitely want to check out Crypto Renegade’s Free Crypto Strategy and start collecting Free Coins today!

Free Crypto Banner

What do you think about cryptocurrency? Do you have any questions about it? Be sure to leave a comment below.

This site uses Akismet to reduce spam. Learn how your comment data is processed.