Bitcoin Holds Firm Above $10K but Strong Bounce Proves Elusive

Bitcoin is trapped in the narrow range of $10,000 to $10,500, but on-chain metrics hint at a rally revival ahead.

AccessTimeIconSep 11, 2020 at 10:58 a.m. UTC
Updated Sep 14, 2021 at 9:54 a.m. UTC

Bitcoin is struggling to gather upside traction despite repeated defense of support at $10,000.

  • The top cryptocurrency's sell-off from the August high of $12,476 looks to have come to a halt near $10,000 over the past seven days.
  • A bear failure at key levels like $10,000 often entices chart-driven buyers and can lead to notable price bounces.
  • So far, however, bitcoin's rebound has been capped at around $10,500.
CoinDesk - Unknown

Bitcoin daily chart

  • Essentially, bitcoin is trapped in the narrow range of $10,000 to $10,500.
  • A range breakdown would imply a continuation of the retreat from highs above $12,400 and yield a deeper sell-off.
  • "If $10,000 is breached, the cryptocurrency could drop to $8,100," crypto trader and analyst Josh Olszewicz tweeted earlier this week.
  • Alternatively, a move above $10,500 would signal an end of the price pullback and continuation of the broader uptrend.
  • Continued improvements in on-chain metrics favor the bullish case.
  • "Robust hashrates enhance network's security and would shift bitcoin's price floor upwards," analysts at Stack, provider of cryptocurrency trackers and funds, said in a weekly research note.
  • Bitcoin's hashrate rose to record highs above 140 exahashes per second earlier this week, according to data source Glassnode.
  • Further, the number of "wholecoiners" or addresses holding at least 1 BTC has hit a record high of 823,000 this week.
  • The metric suggests investors aren't spooked by last week's double-digit price drop and expect the cryptocurrency to resume its broader uptrend.

Read more about

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.