According to statistician Willie Wu, with the market approaching $ 11,000, the price of Bitcoin (BTC) appears to be tilted in favor of the future bulls.
In a series of tweets on September 14, Wu highlighted the strength of the market structure and said that the current price level could be a useful starting point for investors.
Woo: Little chance of a “catastrophic” BTC price crash
“The other impetus for the currency exchange has ended. The next trend has likely shortened in the coming weeks.
“It is highly unlikely that we will see any catastrophic price dumping from here.”
Wu pointed to chain activity on the Bitcoin network that has increased in recent weeks as the Bitcoin / USD pair plunged to a domestic low of $ 9,800.
On Monday, there was a jump to $ 10,800, a price point that analysts have already called a key link for further upward movement.
Their optimism is countered by the possibility that Bitcoin will continue to fall, filling two gaps in the CME Group Bitcoin futures market, to $ 9,600. Wu also indicated that there is a desire for this to happen, with great customer support at this level.
He continued: “I am still wary of another short-term dumping to fill this gap, but so far it appears that there is a liquidity front that will be very optimistic if we break the resistance here.”
“There are many orders in the order books that would widen the gap in the mid-nineteenth century.”
The fundamentals increase the chances of going up
As reported by Cointelegraph, various sources are calling for a price adjustment of BTC after rejecting $ 12,000.
For PlanB, the quantitative analyst behind a family of price alert models, it is time for Bitcoin to set a historical precedent and start at $ 100,000.
This level represents a change in volume, similar to how BTC / USD went from $ 100 to $ 1,000 and then from $ 1,000 to $ 10,000 in 2017.
Backbone networks maintain long-term resilience by staying in business, with hash rates reaching steady peaks and tough times this week. Wu agrees and notes that bitcoin’s difficulty is determined by the upside, not the downside.
“When we zoom out to the middle of the macro (a few months ago) we are in a very good pressure area for the difficulty bar, after cutting in half (the red vertical), this is a fairly reliable indicator of bullish sentiment,” he wrote.
Wu created an index of difficulty ranges in August of last year. It reflects the link between increasing difficulty and mining sales – and thus selling pressure in BTC – giving an idea of when long-term investors will enter the market.