In recent weeks, Bitcoin’s technical strength has been further growing. In fact, it is beginning to be reflected in its price action.
The digital asset’s buyers finally improved further after a stretched bout of technical weakness when BTC traded within the lower-$10,000 regions. As aftermath, there was an abrupt move upwards. Then because of it, the price climbed towards $11,000.
Today, it had a firm upswing that strengthened its technical outlook. Moreover, analysts are now keeping their eyes on the movement towards $11,000 in the near-term.
Furthermore, the fundamental strength the crypto showed in recent weeks has perpetuated this technical strength.
Bitcoin may be in the process of conducting a trend reversal. As what one analytics firm observed, the activity surrounding the cryptocurrency’s wallet count seems to support this claim.
Because analysts flip bullish on the crypto, this sign of a trend reversal takes place. Moreover, this is noting that it may be in a good position to have a significantly further upside in the coming days.
Bitcoin’s Technical Strength Grows; Analysts Eye Further Upside
As of the moment, Bitcoin is trading up over 3 percent with the current price of $10,700. This price commemorates a noticeable upswing from its daily lows of $10,200 that was fixed during yesterday’s little downtrend.
The crypto’s technical outlook received a strong blow from the weakness it has seen throughout the past couple of weeks. Analysts are now saying it may be in a position to see a reversal of its mid-term bull trend.
On the other hand, it had a strong defense at the $9,900 to $10,000 region. Moreover, it has been an amazingly positive development for the cryptocurrency. This may indicate a strong base for it to grow against.
One trader discussed that he is anticipating further upside. He further noted that its current upswing indicates that a rally past $12,400 may be approaching. He stated:
BTC Wallet Activity Points to a Bullish Trend Reversal
Bitcoin’s daily active address count has been dropping throughout this ongoing rebound.
This indicates the trend is changing. Historically, these types of sharp drops come before Bitcoin’s mid-term direction.
Today’s decline in daily active addresses may mean that this is the beginning of a new uptrend if this historical trend continues.
If this would be combined with Bitcoin’s strong technical outlook, it seems that upside is approaching.