And there we have it, gents and ladies. For the umpteenth time, Bitcoin played both sides of the USD 10,000 in a week, with a 24-hour low registered as USD 9,931 (CoinDesk) almost right after European markets bid goodbye.
The only thing we would say now is that the Americans were the ones keen to take price right back up, so if there were any traders looking to buy a dip, most likely none of their orders triggered unless they really were good enough to predict the tiny and brief slipping below ten thousand.
As it stands, the entire market globally was happy to ride on this current new wave of positivism, and price is now on a trend upwards, sitting at USD 10,317 at 3pm UTC. So, while it is an increase from yesterday’s high, it is also a lower low than on Wednesday. Two sides to the coin on improved price action, we would say.
Fundamental strategists will take quite a lot of confidence from fresh Bitcoin mining metrics released by crypto analyst PlanB, that talks about “Miner Capitulation” based on mining difficulty bottoms and how it can coincide with Bitcoin bull markets.
— PlanB (@100trillionUSD) September 10, 2019
According to his chartings, when combining price as a percentage of difficulty lows, along with the number of blocks found since the last low, price typically rises in an order of magnitude less relative to the last difficulty low.
For example, n late 2013, Bitcoin’s price high of USD 1,300 represented a 50,000% increase versus the last difficulty low. That last all-time high in late 2017 corresponded to a 9,000% increase.
Bitcoin mining difficulty is also currently at an all-time high, and some see this as a measure of the competition between miners, which drives the difficulty to increase. If this holds, according to PlanB’s charts, we will see USD 31,000 price in 2021, when difficulty again hits a floor. Fellow commentator Parabolic Trav observes: “Wee baby bull market.”
Others unimpressed will instead look to the current buzz on Twitter that seemingly is trying to push a bearish agenda with radio chatter alive with discussions on a major “descending triangle” claimed to be forming on the Bitcoin price charts. Twitter citizens are comparing it to a large triangle that, after weeks of holding at USD 6,000, broke down in 2018 to consequently lose about 50% of value thereafter.
This mystery triangle is probably one of the more famous patterns bears look for in technical analysis. Price forms a descending trend line via lower highs, in tandem with a second horizontal trend line with equal lows. Purists add candle wicks and must see alternating touches to confirm this triangle.
— BitcoinAgile (@bitcoinagile) September 12, 2019
Peter Brandt has pointed out last week that this triangle is only a triangle when complete, so we have to see this out in a few more weeks, giving the bulls an opportunity to break out of that triangle. And of course, permabulls are hardly convinced, as one HerroPreez Crypto, who has promised to give away USD 300 in BTC if Bitcoin closes above USD 12,000 this month, declares: “… this descending triangle is going back up to the ascending triangle path, making USD 12k potential for September!”
Scott Melker of CoinTelegraph also concurs with Brandt, saying that there is little to show it is more thana consolidation pattern, and is not one until confirmed:
“Traders can do themselves a favor by trying to understand why a pattern exists (the underlying psychology that leads to the pattern formation), rather than just taking what appears to be a pattern at face value and slapping that designation on it without confirmation — and then trading it.”
Triangle going up or down, matters little to sentiment, but what clues do we have as to where emotion is going to take us? Emotions are clearly in the Fear territory of the Fear and Greed Index, but not quite in territory that would take price all the way down, we feel.
Bitcoin Fear and Greed Index is 39 – Fear pic.twitter.com/KS2ChR2Bc4
— Bitcoin Fear and Greed Index (@BitcoinFear) September 12, 2019
Anyway, the weekend is looming and when the English Premier League kicks off again after the football season in Europe resumes after the international break, and one particular club will be sporting the Bitcoin logo on its jersey. Watford FC, playing in the top-tier of English football, announced today that it will put the famous Bitcoin logo on its players’ jerseys.
Watford FC’s main shirt sponsor Sportsbet.io said:
“The crypto community have been hugely supportive of us since we began, so putting the Bitcoin logo on the sleeve felt like a fun way to give something back while also showing them our support.”
How about that for Bitcoin and prominence?
Image Courtesy: Pixabay