- Bitcoin price is trading closer to a potential triangle breakout with eyes set on $11,000.
- Bitcoin flips the Russian ruble to become the sixth-largest currency in the world.
- On-chain analysis confirms the possibility of an uptrend awaiting Bitcoin in the short term.
Bitcoin price is settling above the short term 50 Simple Moving Average, perhaps this a bullish signal. Meanwhile, the flagship cryptocurrency upside is capped under $10,400. Moreover, it is obvious to spot the consolidation within the Bollinger Bands. As the bands get even more constricted, Bitcoin nears a squeeze that, without a doubt, will eventually result in high volatility and a significant breakout.
BTC/USD 1-hour chart
The bellwether digital asset is trading above the middle Bollinger Bands layer (currently forming a confluence with the 50 SMA mentioned earlier in the hourly range). If the resistance at $10,400 is turned into support, we can expect BTC to make a remarkable move upwards.
Bitcoin beats the Russian ruble to become the sixth-largest currency in the world
The king of cryptocurrencies, Bitcoin, has in the past decade grown in popularity and adoption. Besides, being the most popular crypto globally, a survey indicates that BTC is now the sixth-largest currency. BTC left the Russian ruble (RUB) in the dust and made position six among the world’s largest currencies. The US dollar still ranks as the world’s largest currency with $1.95 trillion notes and circulation coins. The euro (EUR) comes second, having 1.38 trillion coins and notes in circulation. The third, fourth, and fifth places were scooped by the Chinese Yuan (CNY), Japanese yen (JPY), and the Indian rupee (INR) in that order.
Bitcoin is quickly growing to become a mainstream currency and digital asset. As people around the world discover and adopt Bitcoin, its value will continue to grow. The maximum supply of 21 million coins means that BTC is a scarce currency, a feature that could make it tremendously valuable in the future.
Bitcoin on the verge of a massive breakout
Bitcoin is still trading at the apex of the symmetrical triangle discussed in detail on Friday. A break above this triangle would boost Bitcoin above the psychological resistance at $11,000.
Note that the Moving Average Convergence Divergence (MACD) has been growing steadily from the dip to -299 in the first week of September. Although the MACD is a lagging indicator, it can show the general trend of the asset. For now, the indicator reveals that BTC’s uptrend has fuel and is bound to continue.
BTC/USD 4-hour chart
On the other hand, the daily range shows that the above symmetrical triangle could confirm a bear flag pattern, which means Bitcoin’s upward case would be jeopardized. Therefore, it is essential that bulls seize the opportunity and quickly push that breakout to $11,000. Otherwise, another rejection at $10,400 could prematurely end the uptrend and pull BTC into a spiral towards $9,000.
BTC/USD daily chart
Bitcoin fundamental analysis
According to the on-chain data provided by IntoTheBlock’s IOMAP, the immediate supply zone from $10,389 – $10,698 is not rock-solid. Previously, 432,190 addresses purchased a sum of 509,570 BTC in this range. A break above the area would pave the way for gains to the next formidable hurdle at $11,316 – $11,625, a region where 1.29 million addresses bought 690,810 BTC.
On the downside, the prevailing support between $10,369 and $10,389 is not strong enough to hold BTC for a long time. Note that the previous demand in this zone was only 18,120 BTC from 32,150 addresses. Bitcoin is hanging at the edge of a cliff, could also push below the most robust support at $10,060 – $10,243, where 1.93 million addresses are profiting from the 895,520 BTC purchased.
IntoTheBlock IOMAP chart
From the above analysis, we can tell that Bitcoin is fundamentally ready for an upward move, hence confirming the symmetrical breakout. However, traders must be aware that a bearish flag pattern could come into the picture, thereby sabotaging the uptrend. On the positive side, the IOMAP shows demand between $10,060 and $10243 can stop losses and nullify any possibility of a breakdown to $9,000.