Many on-chain indicators are showing an encouraging mid-term trend. Nevertheless, some suggest a shaky short-term momentum.
Significant correction unlikely; $ 8,800 is major support.
Traders do not forecast a March-like 50% drop in the price of Bitcoin, as Cointelegraph previously reported.
Su Zhu works at Three Arrows Capital. He is CEO there. Thus, Zhu said that the chance of Bitcoin declining to $5,00 is now less likely than Bitcoin surging to $100,00. He wrote that he is amazed by the strength shown at 10k. Thus, it means 100k is more probable than 5k at this stage.
On Bitfinex, there is an abundance of whale buy-orders at $8,800. A drop to the high-%8,000 levels is a possibility since whales tend to bid the lowest support levels to ensure liquidity—nevertheless, the black swan market plunge at this period. Bitcoin could defend $10,000 for a long time.
All in all, for the three consecutive days, the price of Bitcoin decreased below $10,000. An on-chain analyst says that despite the weakness in Bitcoin’s short-term trend, mid-term bullishness is intact.
Within five days, the price of Bitcoin slipped to $10,000 from $11,462, recording a 12.6% drop. Furthermore, Gold struggled to rebound from fading momentum. It coincides with the recovering United States dollar.
Willy Woo is an analyst of the on-chain market. Local on-chain indicators turn bullish, said, Woo.
On-chain indicators are including the likes of network activity, active addresses, ‘HODLing’ activity, and the NVT ratio. The Bitcoin NVT signal, for example, attempts to spot markets peaks with evaluating the price against daily transaction value.
Because of a steep drop of Bitcoin since $12,000, on-chain data points hint at a bullish mid-term trend. Meanwhile, since its yearly high, the price of Bitcoin plummeted around 20%, and network activity remains relatively stable.
Woo said, on September 6, that local on-chain switching bullish is not calling that this has bottomed