- Bitcoin’s 10-day price performance has been impressive
- Some expect Bitcoin’s price to surge higher while others expect a dip to the $10k region
- Bitcoin faces stiff hurdles on the near term
Bitcoin News Today – The price action of Bitcoin has been pretty impressive over the past ten days. Bitcoin has surged from around $10,400 to a high close to $11,750. At the time of writing this article, the digital currency is changing hands at $11,350, far above its recent lows but still below its highs. While many see this price action as consolidation before another thrust higher, the digital currency has formed a strong bearish signal after this rally.
Some fear that it is a precursor to a strong move to the downside. Another also believes that the price of the digital currency would plunge towards the $10k mark. The digital currency has been within its current trading range for a couple of days now, and many are expecting a major upside move.
Bitcoin (BTC) Price Today – BTC / USD
Bitcoin Is Forming Near Term Sell Signals
The benchmark digital currency is forming some near term sell signals despite it holding pretty well in the face of news that OKEx has frozen withdrawals. OKEx froze withdrawals on Friday morning, saying that one of the holders of the company’s private key has not been in contact with the trading platform. Bitcoin recently printed a Tom Demark Sequential “Sell 9” candle on its 10-hour CME futures chart, according to an analyst.
This is crucial, as this indicator has been very essential for BTC over the past few months. “Sell 9” candles have marked the $12,500 highs in August, the $12k local highs towards August ending before a $2k plunge, along with near term bottoms and tops. This latest move indicates that the digital currency would continue its descent in the coming days.
Bitcoin Faces Key Hurdles on the Short-Term
JP Morgan strategist recently pointed out that Bitcoin is facing some headwinds as it starts to trade over its intrinsic value. The JP Morgan team has been covering cryptocurrency for a couple of years now. The firm said that there is seemingly an extension of net long positions on digital currency futures platforms, and it suggests that the market is overleveraged to the upside.
This means there is a possibility of the market moving in shorts to reset this positioning hence, avoiding overleveraging by long position holders. The firm said:
“The JPMorgan strategists said they calculated an intrinsic value by effectively treating Bitcoin as a commodity and looking at the marginal cost of production.”
With institutions now flooding the crypto space, many believe Bitcoin scarcity is imminent, and this would help push the price of the digital currency higher.