Analytics Company – That’s why Bitcoin fails at the $11,000 mark
The price of Bitcoin has entered a consolidation phase and the asset is traded between $10,600 and $10,800.
The strong upward trend of the crypto currency has come to a halt in recent days as it approaches the $11,000 mark, as there is considerable selling pressure at this level.
Analysts are now divided about where BTC might go next, as everything depends on whether $11,000 proves to be a manageable level.
An analyst firm has now discovered an indicator that shows why BTC does not seem to break this level.
As a result, there is currently a „serious lack“ of address activity on the network, indicating a fundamental weakness.
Bitcoin has consolidated since the cops were able to push it towards a peak of $11,000. The move to this level earlier this week was promising, but it has since been followed by another prolonged period of sideways trading.
The overall development of the market in the coming weeks is likely to depend largely on how the market reacts to the selling pressure here.
If bears take control and push BTC down, it may not find strong support up to $10,000, with a break down here being severe.
A fundamental indicator that could contribute to this slight weakness is a „serious lack of address activity“ – according to one analyst firm.
Bitcoin consolidates below $11,000, but weakens
At the time of writing, Bitcoin is quoted slightly higher at a price of $10,770. This is roughly the price at which it has been traded in the past few days.
Yesterday, after rising towards $11,000, BTC faced a sudden influx of selling pressure that brought its price down to as low as $10,500 on some trading platforms.
While the decline to these lows was only temporary, it did highlight the strength of BTC’s short-term resistance and some underlying weakness in the bulls.
Analyst firm: Flashing warning signals for BTC due to declining network activity
Analysis platform Santiment writes in a recent tweet that there is currently a serious lack of address activity in the Bitcoin network. This points to a fundamental weakness among buyers of the crypto currency.
„Why does BTC continue to see drop-offs as we approach $11,000? Our DAA divergence model indicates that the network has a serious lack of address activity. Today is the fifth most common drop in the last 6 months.“