Bitcoin's core strength has been growing in recent weeks, which is beginning to reflect on the price action.
After prolonged technical weakness due to BTC trading in the below $ 10,000 zone, the digital asset's buyers have finally risen. They catalyzed a sharp upward move and then allowed its price to rise to $ 11,000.
Today's strong rise has strengthened his technical outlook and prompted analysts to approach $ 11,000 in the near term.
It also appears that this technical strength is sustained by the underlying strength expressed by crypto in recent weeks.
An analysis firm observed that the activity surrounding the cryptocurrency's wallet number appears to indicate that BTC may be in the process of reversing a trend.
This sign of a trend reversal comes from analysts as the cryptocurrency is on the rise, pointing out that it may be well positioned to see significantly more spikes in the coming days.
Bitcoin's Technical Strength Grows As Analysts See More
Bitcoin is trading above 3% at its current price of $ 10,700. This price marks a notable rise from the daily low of $ 10,200 set during yesterday's slight downtrend.
The weakness that crypto has seen over the past few weeks has hit its technical outlook, causing analysts to note that the mid-term bullish trend could reverse.
However, the strong defense of the $ 9,900 to 10,000 zone has been an incredibly positive development for the cryptocurrency, indicating that it could be a strong foundation for growth against it.
A merchant he explained He said that he expected further upside, noting that the ongoing rally indicates that a rally over $ 12,400 may be approaching.
"You have to follow a scenario," he said, pointing to the chart shown below.
Image Courtesy of George. Chart via TradingView.
BTC Wallet Event Shows Upward Trend Reversal
Throughout this ongoing recovery, Bitcoin's daily active address count drops.
Historically, this is indicative of a changing trend as such sharp declines preceded changes in Bitcoin's medium-term direction. This can be seen by looking at the chart below from analytics firm Santiment:
Image Courtesy of Santiment.
If this historical trend continues, today's decline in daily active addresses may indicate the beginning of a new uptrend.
When you combine this with Bitcoin's strong technical perspective, it seems that the reverse could be imminent.
Featured image from Unsplash. Charts from TradingView.