Bitcoin rushes to $11K while the market ‘buries’ altcoins

Bitcoin once again jumped off after the correction and hit the ceiling at around $10,700, but on Friday morning it shows signs of an attempt to test a new resistance level. Bitcoins are being redeemed over and over again after the declines, but this won’t last forever. In case the BTC faces serious difficulties above the resistance level $10,800, we can expect the strengthening of bearish sentiment – with lower lows and growth of trading volumes.

Nevertheless, if we consider the historical perspective, September is more inclined to show a side trend with a strengthening of bullish mood closer to October. Taking into account the fact that we are not in the bear market, and at the end of September is scheduled to launch the delivery futures from Bakkt, it is possible to assume that the market will get an impulse from institutional money.

Other positive statistics from CoinMetrics indicates that the number of Bitcoin addresses stored from 10 BTC (about $105K) has reached 1% of all wallets or 157K addresses. A very small number of Bitcoin holders use it for making payments. Many current investors bought Bitcoin on minimums or near them that is confirmed by the absence of large-scale sales within the limits of numerous corrections as owners of Bitcoins anyway are in a huge plus even if the market falls. 

The mining difficulty of Bitcoin continues to grow. It means that new ASIC-devices are launched, supporting the bullish mood in the market. It is believed that the indicator of the hash rate in the Bitcoin network has a background impact on the price dynamics. And now we see a clear “north” direction.

The dominance index chose the same direction, as it grew to almost 71% this week. Thus, the index grew by more than 3% over the month. The trend of selling alternative cryptocurrencies in favor of Bitcoin remains, but market participants understand that Bitcoin itself has been “buried” many times, and now the same is happening with altcoins….

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