Traders Buy Bitcoin Bottom Against $20,000 Test Rebound In Sight? After a positive start to the week, Bitcoin tumbled on Tuesday on higher-than-expected US inflation, and then deepened its slide to a low of $19,330 last night. However, there are signs that the worst is over, and the cryptocurrency could bounce back from there.
Indeed, blockchain data shows that many investors bought Bitcoin at its low this week.
Investors Buy Bitcoin Bottom.
As of yesterday, Friday, September 16, the number of BTC addresses with a balance of at least 0.01 Bitcoin hit a new all-time high at 10,702,698 addresses, according to data provided by Glassnode, a collection, and intelligence company. blockchain data analysis.
Another positive signal, the number of daily new Bitcoin addresses created on the network also marked a record 417,354 new addresses.
Very clearly, these data reflect the desire of small investors to take advantage of the fall of Bitcoin to buy cryptocurrency at a discount, while BTC broke through the major psychological threshold of $20,000.
This is a consistent behavior of the crypto community, which often adopted a buy-on-dip strategy, which has always paid off in the more or less long term. It is also a sign that Bitcoin may have finished its slide, and it could be preparing to rebound significantly this weekend and next week.
To try to confirm or refute this bullish outlook for Bitcoin, we will focus below on the current technical factors of the BTC/USD price.
Positive and negative for Bitcoin from a technical point of view.
Graphically, Bitcoin's slide since Tuesday was halted by the $19,500 support zone, which had already offered support for the cryptocurrency in late August and early April. September, and which therefore becomes an even more important floor.
If, however, this threshold gives way, Bitcoin will then find its next support at around $18,550, the low of September 6. Then the June 10 yearly low at $17,590 will come into play.
On the upside, although a return above $20,000 would be psychologically positive, the first real confirmed technical obstacle is around $20,400, before around $2,750. Then, the next bullish targets visible on the daily chart will be located at 21,800/22,000 $, then 22,800/23,000 $.
It will also be recalled that a step back on the Bitcoin daily chart shows that the cryptocurrency remains below a long-term downtrend line that extends from the all-time high of November 2021, which is currently around $24,000. Only a return above this line would begin to significantly improve Bitcoin's bottom profile.
Note that the daily chart also shows that the bearish reversal of Bitcoin on Tuesday corresponded to a rejection from the 100-day moving average, currently located at $21,630, which is therefore also an obstacle to take into account.
The fate of Bitcoin ultimately depends above all on the Fed meeting.
Beyond these positive signs for Bitcoin with respect to blockchain data and chart analysis, it should also be noted that the fate of Bitcoin next week largely depends on the Fed meeting which will take place on Wednesday evening.
Since Tuesday's higher-than-expected US inflation data, the market is starting to look to the Fed to go beyond a 0.75% rate hike and go as far as a 1% hike. This would be a powerful bullish factor for the Dollar, and bearish for Bitcoin and cryptocurrencies in general.
Crypto traders will therefore have to monitor all possible clues between now and the event allowing them to refine anticipations for the next Fed meeting, which will undoubtedly have a decisive impact on Bitcoin, and on the global financial markets in general.
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