- Bitcoin (BTC) is experiencing a surge in interest, with 527,000 new addresses being created daily, marking a new yearly high.
- This is a positive sign for the long-term prospects of BTC, as it indicates sustained interest and trust in the cryptocurrency network.
- The price is currently trading just below the $26,000 resistance level, aligning with the 9-day Exponential Moving Average (EMA) line.
Despite the ongoing fluctuations in the price of Bitcoin (BTC), there’s a growing interest in this leading cryptocurrency, as highlighted by cryptocurrency trader and analyst Ali in a recent tweet. Ali revealed that a significant number of new Bitcoin addresses, approximately 527,000 daily, are being created on the Bitcoin network. This surge in address creation marks a new yearly high, even though BTC’s price has been hovering around $26,000.
— Ali (@ali_charts) September 8, 2023
Ali’s perspective on this situation is quite optimistic. He believes that the increasing number of addresses on the Bitcoin network is a positive sign for the long-term prospects of BTC. It indicates that there’s sustained interest and trust in the cryptocurrency network despite its price volatility.
From a technical perspective, Bitcoin’s price is currently trading just below the $26,000 resistance level, which also aligns with the 9-day Exponential Moving Average (EMA) line. If Bitcoin manages to close a daily candle above the $26,000 mark within the next 24-48 hours, there’s potential for its price to continue its upward trend toward the next significant level at $26,800.
In a bullish scenario, Bitcoin could even reach as high as $28,200 in the next two weeks. However, if it fails to close a daily candle above $26,000 within the next 48 hours, there’s a possibility of a retracement to $25,300 in the coming days. Continued selling pressure may push BTC below the crucial $25,300 support level, potentially leading to a further drop to $24,000 over the next week.
It’s essential for investors and traders to take note of the prevailing technical indicators, which at the time of writing, were leaning toward a short-term bearish outlook. The 9-day EMA line was positioned below the 20-day EMA line, indicating that sellers currently hold the advantage in terms of short-term momentum. Additionally, a significant bearish technical flag was on the verge of being triggered.
The daily Relative Strength Index (RSI) line was also showing signs of potential bearish momentum as it attempted to cross below the daily RSI Simple Moving Average (SMA) line. If these two indicators cross, it could suggest an increase in bearish sentiment, potentially leading to a decline in Bitcoin’s price in the coming days.
In conclusion, it’s essential to approach the cryptocurrency market with caution and conduct thorough research and due diligence before making any investment decisions. The information provided in this analysis is for informational purposes only, and readers should be aware that any action taken is done at their own risk. Crypto Avanza and its affiliates are not responsible for any direct or indirect damage or losses resulting from investment decisions.