CryptoPotato
CryptoPotato
  • Crypto News
  • Margin Trading
  • Guides
    • Bitcoin & Crypto Guides 101
    • Bitcoin For Beginners
    • Editorials
  • DeFi & NFT
  • Buy
  • Language
  • Crypto News
  • Bitcoin For Beginners
  • Cryptocurrency Guides 101
  • Editorials
  • Bitcoin & Crypto Margin Trading
  • DeFi & NFT News
  • Bitcoin Price Analysis
  • CryptoPotato Crypto Fund
  • Ethereum (ETH) Price Analysis
  • Ripple (XRP) Price Analysis
  • Market Updates
  • Interviews
  • Buy Bitcoin with Card
  • bitcoin
    BTC$29,580.00
  • ethereum
    ETH$1,975.59
    • Market Updates
    • BTC Analysis
    • ETH Analysis
    • XRP Analysis
    • Interviews
    • Crypto Fund
    Home » BTC » Bitcoin Price Analysis: BTC Continues Consolidation, Here are the Key Levels to Watch

    Bitcoin Price Analysis: BTC Continues Consolidation, Here are the Key Levels to Watch

    Author: DanBTC916

    Last Updated Sep 10, 2021 @ 14:35

    Once again, BTC held support at the critical 200-day moving average of around $46k after shaking another round of weak hands. Although the near term charts look bearish, the overall trend in fundamental, technical, and on-chain data remain firmly bullish, indicating Bitcoin will likely head higher in the next few months.

    IMG_5337.png
    Chart by TradingView

    BTC Falls While Strong Hands Continue to Buy

    Spot exchange reserves printed another multi-year low, further indicating strong accumulation, especially with long-term holders and entities with a low history of selling. Total spot exchange net flows came in at nearly -3000 BTC with total spot inflows of 9,858 BTC and total spot inflows of 12,788 BTC.

    Looking at BTC miners, on-chain metrics show a return to accumulation after minimal selling during the liquidation event. Total miner outflows to exchanges to sell have fallen significantly while miner reserves have been increasing.

    CryptoQuant’s UTXO Age Distribution metric showed that coins older than 12 months continued to hold while the same 3 to 6-month cohort panic sold again. This metric, along with many other on-chain metrics, continues to invalidate the bear thesis calling for a bull trap. Although a bull trap is possible, there are currently no major warning signals on-chain to support the thesis.

    For the bears to be validated, long-term holders, large miners, and entities holding large amounts of older coins need to start selling to form a selling trend on-chain. The data continues to favor the bulls, firmly suggesting this is a shakeout on the way to higher prices in the next few months.

    Over the past few months, on-chain data has been showing a trend of whales sending BTC to derivative exchanges, likely to build positions or fill up on margin. CryptoQuant CEO Ki Young Ju posted a chart showing All Exchange to Derivative Exchanges Flow Mean using a 30-day moving average. Ki points out when the 30-day moving average of the BTC flow mean pushes higher, this has historically led to significant rallies in BTC months later.

    IMG_5346.jpeg
    Chart by CryptoQuant

    Mid-Term Bullish Technical Signal Flashing

    The 3-day chart of BTC is starting to look much better, especially after momentum pushed above neutral and continues to trend higher. As of yesterday, the 21-day moving average crossed above the 50-day moving average on the 3-day chart, signaling mid-term strength in momentum and structure.

    IMG_5338.png

    Chart by TradingView

    IMG_5342.png
    Chart by TradingView

    More importantly, the aggregate on-chain data remains strong and continues to show a bullish trend in HODL behavior and accumulation. The current conditions are very similar to May 2020, which was the last time the bullish crossover occurred. In short, cohorts holding older coins were accumulating and holding in May 2020 and are currently showing similar behavior now. This is yet another mid to long-term bullish signal for the largest cryptocurrency. Note, as cohorts age into the next age category, this will cause coinciding moves up and down, such as the 12 to 18 month aging into the 18 months to the 2-year group.

    IMG_5345-scaled.jpeg
    Chart by CryptoQuant
    IMG_5345-scaled.jpeg
    Chart by CryptoQuant

    A Key Level to Watch

    Near term, it is important to see BTC continue to protect critical support at the 200-day moving average at $46k, and start reclaiming $47.2k, a major level according to the UTXO realized price distribution metric. A close back above $47.2k is a near-term bullish signal and should help boost momentum heading into the weekend, setting up for an attempt to reclaim $50k.

    So far, it is good to see long liquidations cooling off, a signal of weakening sell pressure. Considering large holders of older coins are not selling, and near-term momentum on the 4-hour chart is slowly trending higher, it’s possible BTC has found a bottom and will begin the recovery process to reclaim $50k.

    The near-term chart may look “scary,” but the overall trend in fundamentals, technicals, and on-chain remain firmly bullish and strong suggests higher prices in the coming weeks and months.

    SPECIAL OFFER (Sponsored)
    Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).

    PrimeXBT Special Offer: Use this link to register & enter POTATO50 code to receive up to $7,000 on your deposits.


    Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.

    Cryptocurrency charts by TradingView.
    Tags: Bitcoin (BTC) Price
    Enjoy reading? Share with your friends
    Facebook Twitter LinkedIn Telegram

    About The Author

    DanBTC916
    More posts by this author

    Dan is a cryptocurrency Onchain/Technical analyst at a Crypto Fund with 11 years of experience in equity markets and over 4 years in crypto markets. Dan’s background and deep understanding of Finance and Economics have sparked a deep passion for the cryptocurrency markets, especially in Bitcoin. Follow Dan on Twitter

  • bitcoin
    BTC$29,580.00
  • ethereum
    ETH$1,975.59
  • Join Our Community

    FacebookTwitter YouTubeTelegram


    Editorials
    Binance Visa Card Guide: Read Before You Order

    Binance Visa Card Guide: Read Before You Order

    Bitstamp CEO JB Graftieaux: We Are Still Early (Interview)

    Bitstamp CEO JB Graftieaux: We Are Still Early (Interview)

    Okay Bears NFT Collection: The Complete Guide

    Okay Bears NFT Collection: The Complete Guide

    Our Ambition is to Become the Amazon of Crypto: Interview with Coinbase’s Guillaume Chatain

    Our Ambition is to Become the Amazon of Crypto: Interview with Coinbase’s Guillaume Chatain

    Bittrex CBO: Why Bittrex Lost its Lead, Token Sales’ Critical Mistakes, and How to Get Listed (Interview)

    Bittrex CBO: Why Bittrex Lost its Lead, Token Sales’ Critical Mistakes, and How to Get Listed (Interview)

    What is Balancer Protocol? Everything You Need to Know

    What is Balancer Protocol? Everything You Need to Know

    Coinbase Wallet For Beginners: The Complete Guide

    Coinbase Wallet For Beginners: The Complete Guide

    Join Our Newsletter
    Become a CryptoPotato VIP
    One Weekly Email Can Change Your Crypto Life.
    Sign-up FREE to receive our extended weekly market update and coin analysis report
    We NEVER send spam. You can unsubscribe at any time.
    Invalid email address
    Thanks for subscribing!
    About
    Advertise on CryptoPotato
    About Us | Contact Us | Careers

    Terms of service | Privacy Policy | GDPR
    More Sections
    IEO List | Evaluations
    Airdrops
    Scholarship
    Cannabis Stocks News | Market Analysis
    Disclaimer
    Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. Full disclaimer
    © Copyright CryptoPotato 2016 - 2021
    Scroll to top
    One Weekly Email Can Change Your Crypto Life.

    Sign-up FREE to receive our extended weekly market update and coin analysis report

    We never send SPAM. You can unsubscribe at any moment
    Invalid email address
    Thanks for subscribing!