Bitcoin Price Prediction: BTC flashes sell signal, short-term correction imminent
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After falling from $11,925 to $10,165 on 2nd and 3rd September, Bitcoin entered a consolidation period, which lasted till October 7. During this perio

  • BTC bulls have stayed in control since October 7, taking the price up from $10,600 to $11,500.
  • The price has struggled to break past the $11,700 resistance line.
  • BTC bulls have stayed in control since October 7, taking the price up from $10,600 to $11,500.
  • The price has struggled to break past the $11,700 resistance line.
  • After falling from $11,925 to $10,165 on 2nd and 3rd September, Bitcoin entered a consolidation period, which lasted till October 7. During this period, the premier cryptocurrency managed to stay above the $10,000-mark. Finally, on October 7, BTC started a bullish rally, which saw it go up from $10,600 to $11,500 (as of writing).

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    The technical outlook

    Despite this strong upward movement, the price has currently faced rejection at the $11,700 resistance level. While the MACD shows sustained bullish momentum, it looks like this level has been strong enough to absorb an immense amount of buying pressure.

    BTC/USD daily chart

    BTCUSD daily chart

    BTCUSD daily chartBTCUSD daily chart

    The TD Sequential Indicator has also flashed the sell signal this Tuesday, which could trigger a downward price movement. IntoTheBlock’s “In/Out of the Money Around Price” or IOMAP suggests that a healthy support level lies at $11,350. As per the model, 1.5 million addresses had previously purchased 730,000 BTC at this level.

    BTC IOMAP

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    If the price break below this level, then the next strong support zone lies between $10,500 and $10,850. The zone is particularly strong since it includes the 50-day SMA and 100-day SMA, as well. Previously, at this level, 2 million addresses had purchased 1.4 million BTC. This zone should be strong enough to absorb any selling pressure, effectively capping BTC’s downside at this level.

    The Flipside: How can the bulls continue to stay in control?

    The buyers can shrug off the effects of the TD indicator and continue its upward trend by conquering the $11,700 resistance line. Despite the recent price rejection, the IOMAP clearly shows us that going past this level will give the bulls enough firepower to reach the $13,000-level. The bulls will also be encouraged by the whales' actions, which shows that they have been strengthening their positions, instead of dumping their coins.

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    BTC holders distribution

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    According to Santiment’s holders distribution chart, the number of addresses holding 1,000-10,000 BTC increased from 2,075-2,080 from 11th October to 12th October. Similarly, the number of addresses having 10,000 BTC -100,000 BTC went up from 108 to 109 in the same time period. This is a positive sign for BTC as it shows an increasing amount of addresses holding a significant chunk of the premier cryptocurrency.

    Key price level to watch

    If the price begins its downward swing and manages to break below the $11,350 support line, all eyes will be on the support zone between $10,500 and $10,850. While this level looks strong enough to absorb any selling pressure, any break below it will be catastrophic as it will drop BTC to the 200-day SMA ($9,650).

    BTC

    On the flip side, the bulls can turn this narrative around by simply conquering the $11,700 resistance line. By breaking above this level, the bulls will have a clear path to $13,000.
     


    From: FXSTREET