{"id":85341,"date":"2020-10-09T09:34:50","date_gmt":"2020-10-09T06:34:50","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/3-key-indicators-suggest-bitcoin-price-is-preparing-to-retest-11000\/"},"modified":"2020-10-09T09:34:50","modified_gmt":"2020-10-09T06:34:50","slug":"3-key-indicators-suggest-bitcoin-price-is-preparing-to-retest-11000","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/3-key-indicators-suggest-bitcoin-price-is-preparing-to-retest-11000\/","title":{"rendered":"# 3 key indicators suggest Bitcoin price is preparing to retest $11,000"},"content":{"rendered":"

“# 3 key indicators suggest Bitcoin price is preparing to retest $11,000 <\/strong>”<\/p>\n

The price of Bitcoin (BTC) is nearing $11,000 once again after a shaky start to October. Last week BTC fell below $10,500 but on Oct. 9 the price swifty recovered to $10,940.<\/p>\n

In the short term, there are three factors that could enhance bullish sentiment and push the price above $11,000. The possible catalysts are Square\u2019s $50 million investment in Bitcoin, a prolonged accumulation phase, and the recent spike in on-chain activity.<\/p>\n

BTC\/USD daily chart. Source: TradingView.com<\/a><\/figcaption><\/figure>\n

Square\u2019s $50 million Bitcoin investment is symbolic<\/strong><\/p>\n

On Oct. 8, Square, an $81 billion payments conglomerate, announced that it had purchased $50 million worth of Bitcoin which represents 1% of the company\u2019s total assets.<\/p>\n

In an official statement, Square\u2019s chief financial officer Amrita Ahuja said the Bitcoin investment is a step toward financial inclusion. Ahuja said<\/a>:<\/p>\n

\u201cWe believe that bitcoin has the potential to be a more ubiquitous currency in the future. As it grows in adoption, we intend to learn and participate in a disciplined way. For a company that is building products based on a more inclusive future, this investment is a step on that journey.\u201d<\/p><\/blockquote>\n

A $50 million investment for a company the size of Square is not a major allocation but it does symbolize the rising institutional demand institutions have for Bitcoin as an investment vehicle and a store of value.<\/p>\n

The announcement comes merely a month after MicroStrategy, a Nasdaq-listed billion-dollar firm, bought $425 million worth of Bitcoin.<\/p>\n

Mohit Sorout, a partner at Bitazu Capital, pinpointed the positive market movement of Bitcoin despite negative events in early October. He noted<\/a>:<\/p>\n

\u201cFascinating how a myriad of extremely bad news<\/a> didn’t move price but a measly $50m buy from SQ might just force a BTC breakout.\u201d<\/p><\/blockquote>\n

A prolonged accumulation phase is materializing<\/strong><\/p>\n

Bitcoin has been ranging in between $10,500 and $11,000 for most of the past month. As Cointelegraph reported, when BTC\u2019s volatility sharply drops in an extended period, it makes a large price movement likely.<\/p>\n

The Bollinger Bands, an indicator which establishes the price range of an asset based on its volatility, have also narrowed significantly. The 30-day volatility is now at 20%, which historically was only hit 7 times in the past five years.<\/p>\n

Various technical indicators indicate that an upsurge in volatility is probable after a prolonged range. It also raises the probability of an accumulation phase forming, given that BTC has protected the $10,500 support level.<\/p>\n

BTC on-chain activity is rising<\/strong><\/p>\n

According to on-chain analyst Cole Garner, the number of daily active addresses has spiked in recent weeks.\u00a0<\/p>\n

Garner attributed it to a potential increase in demand from investors in China, after the state media<\/a>\u2019s positive crypto report.<\/p>\n

Bitcoin hashrate. Source: glassnode<\/a><\/figcaption><\/figure>\n

In addition to the Bitcoin blockchain network activity, the hashrate is continuously increasing to new highs<\/a>. This suggests that miners are confident in the medium-term price trend of BTC. Researchers at glassnode further explained that:<\/p>\n

\u201cBitcoin hash rate hits a new ATH and touches 170 exahash for the first time in history on the hourly chart (24h MA). That is an increase of around 40% since the halving in May, substantially adding to the security of the network.\u201d<\/p><\/blockquote>\n<\/div>\n