Traders buy Bitcoin bottom, rebound in sight?

Les traders achètent le creux du Bitcoin face au test des 20.000 $ Rebond en vue ?

After a positive start to the week, Bitcoin fell on Tuesday on higher-than-expected inflation, and then deepened its slide to a low of $19,330 last night. However, there are signs that the worst is over, and the cryptocurrency could bounce back from there.

In fact, blockchain data shows that many investors bought Bitcoin at its lows this week.

Investors Buy Bottom Bitcoin

As of yesterday, Friday, September 16, the number of BTC addresses with a balance of at least 0.01 Bitcoin hit a new all-time high at 10,702,698 addresses, according to data provided by Glassnode, a company that collects and analyzes blockchain information.

Another positive sign, the number of new addresses Bitcoin daily created on the network also marked a record 417,354 new addresses.

Very clearly, this data shows the desire of small investors to take advantage of Bitcoin’s fall to buy cryptocurrency at a discount, and BTC broke through the major psychological threshold of $20,000.

This is a consistent behavior of the crypto community, which has often adopted a buy-on-dip strategy, which has always paid off in the long term more or less. It is also a sign that Bitcoin may have finished its slide, and may be preparing for a significant rebound this weekend and next week.

To try to confirm or refute this bullish view for Bitcoin, we will focus below on the current technical factors of BTC / USD price.

Positive and negative for Bitcoin from a technical point of view

Graphically, Bitcoin’s slide from Tuesday was stopped at the $19,500 support zone, which already offered support for the cryptocurrency in late August and early April, and which becomes an even more important floor.

H4B Bitcoin Chart (BTC/USD)

If, however, this threshold is successful, Bitcoin will find the next support around $18,550, the September 6 low. Then the annual low rate of $17,590 will be implemented on June 10.

On the other hand, although a result above $20,000 would be psychologically positive, the first confirmed technical hurdle is around $20,400, before around $2,750. Then, the next bullish targets visible on the daily chart will be located at 21,800 / 22,000 $, then 22,800 / 23,000 $.

It is also recalled that a step back on the daily chart of Bitcoin shows that the cryptocurrency is still below a long-term downward line that extends from the all-time high of November 2021, which is currently around $24,000. Only a return above this line would begin to significantly improve Bitcoin’s bottom line profile.

Note that the daily chart also shows that Bitcoin’s bearish reversal on Tuesday was responding to a rejection from the 100-day moving average, which is currently located at $21,630, so that is an obstacle to consider.

Ultimately the fate of Bitcoin depends above all on the Fed meeting

Beyond these positive signs for Bitcoin in terms of blockchain data and chart analysis, it should also be noted that the fate of Bitcoin next week depends a lot on the Fed meeting that will take place on Wednesday evening.

Since the US inflation data is higher than expected on Tuesday, the market is starting to see the Fed go beyond a 0.75% rate hike and go as far as a 1% hike. ​​​​This would be a powerful bullish factor for the Dollar, and bearish for Bitcoin and cryptocurrencies in general.

Therefore, Crypto traders will have to monitor all possible clues between now and the event ​​that allow them to refine the prospects for the next meeting, which will have a decisive impact without doubt on Bitcoin, and on the global financial markets in general.

Do you also think that Bitcoin will rebound, or are you trying to take advantage of a possible violent movement of BTC next week? In this case, you need the best crypto platform!

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