Bitcoin price prediction: Whales set to drive BTC USD above $11,000

BTC USD started the day at $10,738 and, within a few hours, touched a high of $10,950. The day continued with lacklustre price action. However, volatility took over soon, and the Bitcoin price tumbled as the day closed to touch $10,720.

Bitcoin price has recouped most of the losses it incurred at the start of this week. However, the bounce is yet to materialize fully since the upside momentum is volatile and uneven volumes can trigger another sell-off. Technically, the Bitcoin price prediction is tilting in the bearish territory on the hourly charts making the current recovery look feeble.

Bitcoin price movement in the last 8 hours

At the time of writing, the BTC/USD pair is trading at $10,760. On a daily basis, the king of cryptocurrencies has gained close to 4 percent. The pair touched $10,553 yesterday before bouncing back up due to overbought levels.

As the day comes to a close, the long red candle shows that Bitcoin price has again faced a minor sell-off. The thin volume is likely to drive the price further south towards $10,500 in tomorrow’s Asian session and confuse Bitcoin price prediction. However, bulls will have to push beyond $11,000 for meaningful recovery and also signal the start of another leg up.

BTC USD 2 hour chart – Correlation with stock market poses a threat

Bitcoin price has recovered its previous week’s loss to some extent, but it is still not out of the woods. Worries about the global geopolitical scenario can trigger a stock market rout, and cryptocurrencies will not be spared either. Global events such as impending US elections, China-US trade war, the second wave of Coronavirus, etc. can all wreak havoc on the markets.

In case the price holds above the 50-day exponential moving average, the bulls will likely remain in the driving seat. The pair can see higher levels, including $11,180 and $11,500. A drop below the 200-day moving average and 50-day EMA can slide the price below $10,000 on the hourly charts.

The uncertainty surrounding the 2020 US presidential elections can trigger a political storm. Stock markets hate uncertainty as unclear policies mean businesses take a hit. Lately, the correlation factor of Bitcoin and US stock markets has increased significantly.

Therefore, any extreme political event can certainly take down Bitcoin’s price. In such a charged atmosphere, even an insignificant event can trigger a 10 to 20 percent correction in the stock prices.

Ronnie Moas, heading a research analysis firm, says there’s a strong correlation between Bitcoin and the stock market. He adds that the Bitcoin price is likely to touch $9,000 in case the market spirals downwards. Michael Van De Poppe, another well-known crypto analyst, shares a similar viewpoint and says that BTC/USD pair is likely to touch $9,700 in the short term.

The silver lining in the BTC USD pair

Despite all the gloomy outlook, there’s still positive news to brighten things up for Bitcoin price prediction. Bitcoin is, by default, decentralized, and its correlation with the traditional stock market is transient, to say the least. So, in case economies go down, Bitcoin will ultimately survive the crash better than stocks and shares. The cryptocurrency market is better poised to meet the upcoming volatility before the US presidential elections.

Bitcoin’s macro factors are also lining up positively, and the bulls are waiting for the right signal to jump in. On September 17, the hashrate of Bitcoin hit a new high, and the market capitalization touched $115.5 billion. Institutional investors are also stepping in to buy huge quantities and make the most of low prices.

Rising market capitalization reflects how new investors are Hodling Bitcoin. Evertas, a crypto asset insurance firm, conducted a survey recently where it concluded that institutional investors are entering the cryptocurrency realm in a big way. The trend can accelerate the mass adoption of cryptocurrencies.

Bitcoin whales ready to enter the arena

On Friday, approximately 88,000 options will expire across various crypto exchanges. A clearer Bitcoin price prediction analysis is likely to emerge soon. As traders will look to create new positions once the current options expire, bulls will likely keep the price above the $10,500 mark.

The stable price can also prove to be another entry point for large investors. Santiment chart shows Bitcoin’s buying pressure increasing steadily over the past 24 hours. Wallets having 10,000 BTC have increased, meaning BTC whales are ready to take action.

Grayscale Investments has increased its BTC allocation by buying around $17,000 coins last week. Such spikes may look insignificant on the hourly charts. However, BTC whales control anywhere between $400 million to $3 billion, meaning any trigger can introduce massive liquidity in the market. The sudden spike can certainly start another bullish leg up.

Bitcoin price prediction – Conclusion

The world markets look jittery at the moment, fuelled by geopolitical tensions. Bitcoin is cushioned well as long as it stays above $10,000 level. Once broken, traders must prepare for a sudden move towards $9,200 as selling pressure is likely to intensify going downwards. The psychological barrier of $10,000, if broken, will cause strong dissent among bulls.

From the fundamental point of view, multiple macro signals make it easy to explore Bitcoin price prediction as it points toward a healthy recovery. Once Bitcoin price crosses $11,000, bulls will be more confident of piling up long positions.

Disclaimer. The information provided is not a trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.