Lorenzo Stroe
Independent Analyst
- Bitcoin is currently trading at $10,559, right below a crucial support level at $10,600.
- If bulls can hold this level, the outlook for Bitcoin will remain positive.
Bitcoin was trading inside an ascending triangle pattern between September 3 and September 15, which is created when the price establishes higher lows and a horizontal trendline around the swing highs. The flagship cryptocurrency had a bullish breakout of the pattern on Sept. 14 that saw it rise to $11,100. Now BTC seems to be retesting the x-axis of this technical formation.
BTC/USD 4-hour chart
The most critical support level for Bitcoin in the short-term is $10,600, which almost coincides with the 100-SMA. The flagship cryptocurrency is also seeing an overextended RSIC, which could indicate that a bounce is underway. The current 4-hour candlestick could end up being a hammer candlestick, which usually attempts to determine the bottom.
BTC IOMAP Chart
IntoTheBlock’s In/Out of the Money Around Price model (IOMAP) shows stiff resistance at a price of $10,840 as well as robust support at $10,420. A total of 965,750 addresses bought Bitcoin at an average of $10,420, with a total volume of 719,000 BTC.
On the other hand, more addresses (1,170,000) bought at a price of $10,840, but the volume (707,210 BTC) is lower.
Bitcoin Holders Distribution Chart
 [16.12.29, 21 Sep, 2020]-637362946611220467.png)
Source: Santiment
However, if we look at the chart with new daily active addresses, we can clearly see a decline since September 1. Additionally, the number of Bitcoin whales holding at least 1,000 coins has dropped from a peak of 2,110 holders on September 2 to a current low of 2,100, losing 10 whales.
It seems that the general outlook for Bitcoin is bearish in the short-term, and bulls need to hold the $10,600 level. A bearish breakout of this support point will most likely take Bitcoin down to $10,200. On the flip side, if BTC starts bouncing, we could see the pioneer cryptocurrency retest $11,000.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
Celebrity meme coins controversy continues amid Pump.fun revenue dominance
Pump.fun outperformed the Ethereum blockchain on Tuesday after raking in $1.99 million. Following this achievement, a meme coin based on actress Sydney Sweeney was the subject of controversy after its developers dumped their bags on investors.
PEPE's on-chain metrics indicate potential rally after weeks of silence
PEPE has struggled to see any significant price move after reaching an all-time high in May. Increased adoption rate and low MVRV ratio indicate a bullish run may be on the horizon. A single PEPE outflow from Binance worth $14.7 million gives credence to signs of bullish expectation.
Ethereum has failed to overcome key resistance despite bullish sentiment surrounding ETH ETF
Ethereum (ETH) is down more than 1.4% on Tuesday following another ETH sale from the Ethereum Foundation. Meanwhile, crypto exchange Gemini's recent report reveals that ETH ETF could see about $5 billion in net inflows within six months of launch.
Crypto community blasts Polkadot following report of treasury spending
Polkadot reports $87 million of treasury spending during H1. Crypto community members expressed harsh feelings toward the DOT team's high spending. DOT is up more than 2% in the past 24 hours but risks correction following the report.
Bitcoin: BTC price correction could end in July, according to seasonal data
Bitcoin (BTC) price appears poised for a decline this week, influenced by slight outflows in US spot ETFs, selling activity among BTC miners, and a combined transfer of 4,690.28 BTC to centralized exchanges by the US and German governments.