While it’s too soon to tell whether or not BTC is in a full-blown bull market, a prominent trader says that Bitcoin capturing a specific technical level will set the stage for a surge to $11,000.
Bitcoin’s Recovery Relies On One Key Level
While Bitcoin has bounced approximately 5% from the lows sustained earlier this week, the cryptocurrency remains below a key support level: $9,500, which has acted as an inflection point multiple times over the past few months.
According to a popular cryptocurrency and foreign exchange trader, if BTC manages to close above the level on a daily time frame, it will confirm upside.
“Bitcoin found support on the daily and is mainting its uptrend. Red block is key for me, if we reject from there it’ll confirm distribution above March’s high and I expect much lower. If we can reclaim the red block I am looking to long a pullback to $11k,” he wrote.
Bitcoin chart from cryptocurrency trader/analyst Mayne, who goes by @TraderMayne on Twitter.
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Can BTC Do It?
With the importance of $9,500 being highlighted, a logical place for one’s mind to drift is if Bitcoin can do it — if BTC can hold $9,500.
The technical and fundamental signs say the cryptocurrency can, a number of analysts have said over recent days.
Bloomberg Intelligence’s senior commodities strategist, Mike McGlone recently identified three fundamental trends indicating that Bitcoin will soon trade over $10,000, confirming the technical requirement for the bullish upside the analyst in the first section mentioned. The trends are as follows:
There is an increasing number of active BTC addresses, indicating sustained adoption.
There is a record amount of open interest in Bitcoin futures on the CME.
Grayscale Investment’s assets under management figure has rocketed to an all-time high.
Key indicators support #Bitcoin‘s ability to sustain above $10,000. Increasing addresses used, record-high futures open interest and assets under management (AUM) of GBTC support the digital version of gold’s value and the crypto’s similar direction to the advancing metal. pic.twitter.com/jMWw6Cz97u
— Mike McGlone (@mikemcglone11) May 21, 2020
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Adding to this, crypto analytics startup
Glassnode noted on May 18th that the Puell Multiple — the USD value of BTC issued per day over the one-year moving average of the same metric — recently reached a crucial level.
Chart of Bitcoin’s Puell Multiple (on a macro scale) from crypto analytics firm Glassnode
As the chart above shows, whenever this on-chain multiple entered the green zone, it found a macro bottom.
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