Bitcoin’s price has risen above $10,000 for the first time in nearly a week as Tether releases $7 million in USDT from its wallet and a bullish divergence appears on the 4-hour chart.
Bitcoin Price Up By 5%
Bitcoin has gained more than 5% in a few hours on Monday (September 2, 2019). This surge has seen the bitcoin price climb above $10,000 for the first time since last Wednesday’s (August 28, 2019) drop.
The move above $10,000 might be the start of the post-summer recovery. As previously reported by Bitcoinist, the latter part of the summer period has historically coincided with downward price action for bitcoin.
While it’s still early days in September, the current trend has seen significantly low trading volume with Bitcoinist earlier reporting BTC trading volume reaching a five-month trough.
Despite the recent price struggles, fundamentals continue to strengthen with the network hash rate approaching 90 quintillion hashes per second.
Price Gain Preceded by Bullish OBV Divergence
Back in late August 2019, Bitcoinist’s senior analyst Filbfilb revealed that there were indications of an imminent trend reversal for the bitcoin price action.
— filbfilb (@filbfilb) September 2, 2019
According to Filbfilb, BTC’s 4-hour chart was seeing its first bullish on-balance volume (OBV) divergence since Bitcoin was $3,350.
The rule of thumb for OBV divergence is that they precede price swings. If the rule holds true, then Bitcoin has likely broken the downtrend.
Thus, the next point of concern becomes whether the current period is that of sideways accumulation or another attempt at the $10,300 resistance level.
Veteran trader Peter Brandt recently stated that bitcoin had entered a new region of parabolic advance.
Fresh Tether Printing
Meanwhile, there are reports of a $7 million in USDT transfer from the Tether treasury to an unknown wallet. Large Tether transfers have been known to have material impacts on short-term bitcoin price action.
7,000,000 #USDT (7,014,281 USD) transferred from Tether Treasury to unknown wallet
— Whale Alert (@whale_alert) September 2, 2019
Also, Whale Alert has reported a fresh $10 million USDT has been minted from the Tether treasury. These events happening in such a short space of time might be signalling imminent and significant changes to the bitcoin price action.
Such a fresh influx of cash could help to improve bitcoin’s trading volume. With the trend being that Tether volume leads BTC’s, the above speculation could once hold true.
💵 💵 10,000,000 #USDT (10,031,651 USD) minted at Tether Treasury
— Whale Alert (@whale_alert) September 2, 2019
BTC is currently up by more than 170% with several predictions calling for a new all-time high (ATH) price before the end of 2019.
Do you think the bitcoin price is set for a new ATH before the end of 2019? Let us know in the comments below.
Images via Shutterstock, Bitcoin charts by Tradingview, Twitter @filbfilb and whale_alert.
