- Bitcoin price is facing high congestion of sellers between $10,330 and $10,640 according to on-chain data analysis.
- Bitcoin path of least resistance remains upwards despite the stalling in the same $10,330 and $10,640 range.
The world is changing amid the ongoing Coronavirus pandemic. Governments around the world are continuing to seek solutions to a global challenge than no one had anticipated. In the United States, the printing of dollar bills has become a norm to cushion the economy from the ravenous COVID-19 shocks. People, businesses, and organizations worldwide are adopting new lifestyles, including working at home mechanisms.
In the payments world, new methods are adopted at lightning speed. The pandemic has put cryptocurrencies on the spot; Can they hold the world economy if the fiat systems become unsustainable in the future?
In France, Just Eat France, a well-known online based company, has incorporated Bitcoin payments. According to the announcement made on the firm’s website, Bitpay, a leading cryptocurrency payments platform, has been contracted to provide the service. Just Eat France uses the same business model as Uber Eats. Users have been given directions on how to pay using the new BTC method. However, customers must understand that on payment, the coins are immediately converted to euros by Bitpay. In case of any refunds, customers will receive euros and not BTC.
Bitcoin market update
Bitcoin is doddering at $10,340, following a slight 0.32% loss on Tuesday, September 8. The largest cryptocurrency traded an intraday high of $10,442 during the Asian session. On the downside, an intraday low of $10,310 confirmed the growing support at $10,300 in the short term.
Buyers are fighting tooth and nail to pull BTC above $10,400 and $10,442 immediate resistance zones. A broader scope highlights a second resistance in a narrow range between $10,600 and $10,800.
On the flip side, Bitcoin is well anchored above the 50 Simple Moving Average (SMA) at $10,200 in the hourly range. The high buyer congestion in this zone is likely to continue to keep the selling pressure in check while ensuring that declines towards $10,000 are averted in the week. It is essential to note that the primary support for BTC/USD lies in a narrow range between $9,800 and $10,000.
BTC/USD 1-hour chart
Bitcoin technical analysis
Despite the breakdown, it is essential to note that Bitcoin is still sustaining an uptrend within an ascending channel. Meanwhile, the Relative Strength Index (RSI) highlights the bulls’ effort to first defend the price from dipping lower than $10,000 and second to sustain recovery towards $11,000. Simultaneously, if the RSI stalls in the recovery journey to the midline, we can expect Bitcoin to take up consolidation mainly above the support at $10,200.
BTC/USD daily chart
On the downside, the Moving Average Convergence Divergence (MACD) reflects selling pressure in the market. It means that recovery will not come easy, especially with the resistance already highlighted at $10,400 and $10,600. Buyers must also ensure that the channel support remains intact; otherwise, BTC could easily explore lower levels towards $9,000.
Bitcoin on-chain analysis
According to on-chain data provided by IntoTheBlock, if Bitcoin breaks above the $10,640 resistance zone, the chances are that the bullish leg will close in on the next seller congestion zone at $10,949.22. It is vital to note that in the resistance range ($10,331 – $10,640), the total volume of Bitcoin purchased summed up to $480,200 BTC. The investors in this zone are unlikely to sell Bitcoin at the current market price because they are currently out of the money. Farther up, two of the most critical zones for Bitcoin would be $11,258.20 – $11,567.17 and $11,567.17 – $11,876.14.
In/Out of the Money chart
The data also shows that despite the stalling between $10,331.28 and $10,640.25, Bitcoin is unlikely to dive below $10,000 again. Not that, 1.34 million addresses bought up to 580,340 BTC. The volume at this zone emphasizes the immense support given to the largest cryptocurrency.
Bitcoin path of least resistance is upwards
As discussed above, the flagship cryptocurrency could soon resume the uptrend. The support accorded to it is immense, as shown by the technical analysis at $10,200 and the on-chain metrics at $10,000. The most formidable task for the bulls is to break above the range limit at $10,640. Ones this resistance is in the rearview, Bitcoin bulls will have a great fighting chance for levels above $11,000.