Bitcoin has shown an extreme resilience against bears that want to crash its spot rate below $10,000. And an on-chain analyst explains why.
Forex professional Cole Garner issued a string of tweets earlier Tuesday to illustrate a divergence between Bitcoin’s bearish price moves and its growing network activity last week. The cryptocurrency fell to as low as $10,427 on Thursday. In the same period, its total active addresses soared above 22,000, its highest level in over two years.
Mr. Garner called the current price-address divergence a “new bull market catalyst” as he added more cues to prove its sustainability in the long-term. The analyst’s key focus was the origin of Bitcoin’s new addresses. And he speculated that they were coming from the crypto mining-rich territory of China.
The Pro-Bitcoin China Campaign
Ahead of the third quarter’s close, the Chinese media ran a “coordinated” pro-Bitcoin agenda across multiple outlets. Dovey Wan, the founding partner of Primitive Crypto, was among the first to notice China’s change-of-heart towards the king cryptocurrency as they openly called it the “best performing asset YTD.” YTD stands for year-to-date.
Mr. Garner noted that the number of daily active addresses on the Bitcoin blockchain started rising after China’s Bitcoin coverage. The analyst speculated that Beijing “seems to want to ignite the [Bitcoin] bull market” despite their long track of suppressing the cryptocurrency.
The statement also appeared as leading technical indicators showed an increase in accumulation trends. As Bitcoinist covered earlier, a so-called “On-Chain Smart Money Indicator” noted that more whales were buying Bitcoin last week. Its spotter, an independent analysis firm TradingShot, explained the indicator’s relevance using an old fractal.
TradingShot also hinted at the possibility of the Chinese buying Bitcoin as its price trades lower towards $10,000.
Mr. Garner further discussed the role of Tether’ stablecoin USDT in drawing the Chinese buyers towards the Bitcoin market.
Data from the past two weeks revealed a huge uptick in USDT printing that started appearing right before China’s Bitcoin coverage.
The analyst expected Bitcoin retail market to reflect the ongoing liquidity on-ramp at a later stage. He said he remains “fundamentally bullish” on the cryptocurrency, adding that traders should see higher levels by Christmas.
BTC/USD was trading at $10,740 at the time of this writing.
Originally from Bitcoinist.com https://ift.tt/3leq4Wf
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