Bitcoin Price Rejected Near $11,000; Is a Deeper Correction Coming?
Bitcoin’s price swung lower on Saturday after facing a firm rejection at $10,900, its highest level in over two weeks. The largest digital currency is still up more than $1,000 from last week’s low, raising cautious optimism that the worst of the downtrend had passed.
The bitcoin price was last seen hovering just above $10,400 on Bitstamp, having gained 0.9% during the session but falling more than 4% from Friday’s high above $10,900. BTC/USD is now testing the 30-day exponential moving average (EMA), a level that provided strong support during the half-year bull market.
Volumes were fairly steady, with verified exchanges processing more than $1 billion worth of bitcoin trades, according to Bitwise.
At current values, bitcoin has a total market capitalization of $186.5 billion, which accounts for 70.7% of the overall market.
How bitcoin recovers from the latest setback could determine its short-term trajectory. A failure to regain yesterday’s high could lead to a re-test of $10,000, a level of psychological comfort for the bulls.
“BTC” Searches Skyrocket
Google searches for terms like “bitcoin” and “cryptocurrency” are widely viewed as proxies for how the market views digital assets. If these terms are trending higher, there’s a good chance that retail traders are opening digital currency accounts and depositing money.
Forbes recently drew our attention to the unusual spike in “BTC” searches on Google. According to the latest Google Trends data, “BTC” received peak interest through the first week of September.
By comparison, searches for the word “bitcoin” have leveled off since peaking in late June.
The unusual spike in BTC searches suggests the market is being manipulated in order to move bitcoin’s price. According to Kryptografen, Romania saw the most drastic changes in searches from the previous week. The United States, Norway, Hong Kong and Thailand also exhibited unusual search trends.
“It is reasonable to assume that someone is behind these radical changes,” the researchers said. “That the same pattern can be seen all over the world may indicate that VPN services have been used to distribute the search across the world, thus achieving a global trend.”
Disclaimer: The author owns Bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
Featured image courtesy of Shutterstock. Chart via TradingView.