- Bitcoin bulls double-down on the push for gains above $11,000, extending the leg above $11,800.
- On-chain metrics show whales increasing their holdings in anticipation of a rally.
- The increase in new Bitcoin addresses suggests that the uptrend has momentum.
Bitcoin price diced through the weekend resistance at $11,600, kick-starting the much-anticipated rally to $12,000. The enviable price action seems to have confirmed a triangle breakout previously discussed by the FXStreet team. The flagship cryptocurrency is exchanging hands at $10,782 towards the end of the Asian session on Tuesday. Marginally above the general price level, BTC is facing resistance at the 50-day Simple Moving Average.
BTC/USD daily chart
A broader look at the uptrend currently being nurtured suggests that BTC could soon break above $11,000, but first, the resistance at $11,800 must come down. Meanwhile, the Relative Strength Index (RSI) is almost crossing above the midline. In other words, Bitcoin bullish case seems to be growing. If this indicator holds towards the overbought region, BTC’s bullish case would be cemented. Besides, trading above the 50-day SMA would give the bellwether cryptocurrency a boost closer to the moon.
Bitcoin now a payment option for private jet buyers
Bitcoin adoption as a payment method is always great news. Aviatrade has become one of the high-end businesses accepting BTC as a payment method. The company’s Gulfstream G650ER private jet can now be purchased using Bitcoin. The move is meant to attract the so-called Bitcoin millionaires and other potential buyers who have preferences for cryptocurrencies. Buyers using Bitcoin to get this flagship private jet will benefit from low transaction fees while eliminating banking fees. The move could also validate BTC for use by high net worth individuals when buying high-end possessions.
That said, bulls must ensure that the price keeps above the ascending trendline support. Otherwise, a break below it could encourage sellers to double-down on their positions. The Moving Average Convergence Divergence (MACD) already shows the possibility of sellers turning the tables around. The indicator has not only stalled in the recovery, but a forming bearish divergence suggests that seller positions are rising.
Bitcoin on-chain analysis
IntoTheBlock’s IOMAP highlights subtle selling pressure at $10,775 - $11,084. Previously, 336,340 addresses purchase 261,680 BTC in this zone. If bulls manage to flip this area into support, the next rendezvous would be $11,412 and $11,740, a zone where 1.23 million addresses bought 827,480 BTC. Another spike to the north might not tame the largest cryptocurrency as the target at $12,000 will be quite conservative.
Bitcoin IOMAP chart
There are only 17,370 addresses 'at the money' based on the IOMAP metrics, which means initial support between $10,756 and $10,766 is not strong enough to hold Bitcoin if a breakout above $11,000 delays. Bitcoin would be forced to seek refuge in the range between $10,756 and $10,447.
Bitcoin new address spike
On the other hand, there has been an impressive increase in the number of new addresses within the network. For instance, IntoTheBlock data shows that BTC's new addresses increased from 396,680 on September 13 to 530,810 on September 14. The chart also shows an upswing in the price of Bitcoin as the addresses shot upwards. As the number of new addresses soars, Bitcoin will likely sustain the uptrend.
Bitcoin new address chart
Whales still stocking up on Bitcoin
According to Santiment, a leading on-chain data analytics platform, whales holding between 1,000 and 10,000 coins have been on a buying spree since September 8. Large volume holders tend to pull the price in a particular direction. In this case, Bitcoin's potential for growth above $11,000 and $12,000 increases as whales add more coins to their holdings.
Bitcoin holder distribution
Looking at the other side of the picture
Although shorter timeframes point towards Bitcoin surging to highs above $11,000 and eventually $12,000, it is worth mentioning that the weekly chart still highlights the impact of a double top pattern. In other words, Bitcoin could still be under the influence of the bearish pattern, in a way invalidating the push for gains eyeing $12,000.
BTC/USD weekly chart
It is clear that Bitcoin’s bullish case above $11,000 has momentum and, therefore, achievable. The number of new addresses is increasing while whales continue to add to their holdings. However, the critical resistance at $11,412 and $11,740 must be flipped into support for meteoric gains above $12,000. As mentioned, the double-top pattern's impact on the weekly chart cannot be ignored because it could jeopardize the uptrend.
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