Bitcoin is struggling to gather upside traction despite repeated defense of support at $10,000.
- The top cryptocurrencyâs sell-off from the August high of $12,476 looks to have come to a halt near $10,000 over the past seven days.
- A bear failure at key levels like $10,000 often entices chart-driven buyers and can lead to notable price bounces.
- So far, however, bitcoinâs rebound has been capped around $10,500.
- Essentially, bitcoin is trapped in the narrow range of $10,000 to $10,500.
- A range breakdown would imply a continuation of the retreat from highs above $12,400 and yield a deeper sell-off.
- âIf $10,000 is breached, the cryptocurrency could drop to $8,100,â crypto trader and analyst Josh Olszewicz tweeted earlier this week.
- Alternatively, a move above $10,500 would signal an end of the price pullback and continuation of the broader uptrend.
- Continued improvements in on-chain metrics favor the bullish case.
- âRobust hash rates enhance networkâs security and would shift bitcoinâs price floor upwards,â analysts at Stack, provider of cryptocurrency trackers and funds, said in a weekly research note.
- Bitcoinâs hash rate rose to record highs above 140 exahashes per second earlier this week, according to data source Glassnode.
- Further, the number of âwholecoinersâ or addresses holding at least 1 BTC has hit a record high of 823,000 this week.
- The metric suggests investors arenât spooked by last weekâs double-digit price drop and expect the cryptocurrency to resume its broader uptrend.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.