Bitcoin Bulls to Correct Before Reaching for Higher Highs

2020-10-26 18:55

Investors are growing overwhelmingly bullish about Bitcoin thanks to the recent price action. However, multiple technical and on-chain metrics suggest that a brief correction is underway.

Bitcoin Flashes Sell Signals at Critical Support

Bitcoin made headlines on Oct. 21 after breaking out of an ascending parallel channel containing its price action since the market crash in early September.

The 12% upswing that followed saw the top cryptocurrency surge to new yearly highs. BTC rose to $13,360 for the first time since June 2019, meeting the target presented by the channel.

As the flagship cryptocurrency breached the infamous $12,000 mark,  social media exploded with activity. Community insights provider LunarCRUSH recorded more than 1 billion engagements on Oct. 21 alone.

Unfortunately, high volumes of social mentions during a price pump often leads to short-term consolidations or even steep corrections.

Bitcoin Social Engagement Activity by LunarCRUSH

When looking at the TD sequential indicator on the daily chart, the pessimistic thesis holds. This technical index is currently presenting a sell signal in the form of a green nine candlestick.

If validated, the bearish formation forecasts a one to four daily candlesticks correction before the uptrend resumes.

BTC/USD on TradingView

An increase in selling pressure around the current price levels could see Bitcoin drop to $12,350. But first, the pioneer cryptocurrency would have to break through a stiff support barrier between $12,700 and $13,000.

Here, approximately 750,000 addresses had previously purchased nearly 700,000 BTC, according to IntoTheBlock’s “In/Out of the Money Around Price” (IOMAP) model.

BTC’s In/Out of the Money Around Price by IntoTheBlock

Although the odds seem to favor the bears, a sudden spike in buy orders may have the strength to jeopardize the bearish outlook.

Moving past the recent high of $13,360 and turning this area into support could see Bitcoin rise to $15,000 or higher. The IOMAP cohorts show little to no resistance ahead of the $13,100-$13,500 hurdle.

The Crypto Market Moves Forward

A new wave of developments has brought a lot of attention to the cryptocurrency market lately. Alongside the publicly-traded companies buying up Bitcoin, PayPal is opening the gates for its 350 million users to buy and sell cryptocurrencies.

This positive news aligns with the supply shock that this year’s Bitcoin halving has yet to have on prices.

On-chain analyst Willy Woo believes that the effects of the block rewards reduction event may be just around the corner and would likely “teleport [BTC] upwards into a full-on, FOMO induced, bull run.” However, the high levels of greed among market participants are a concern, especially for the short-term price action.

While the bellwether cryptocurrency continues to hover around the $13,000 zone, there are two crucial price levels to pay attention to.

The underlying support at $12,700 and the overhead resistance at $13,360 will help determine where prices are headed next.

Moving above this zone will signal a jump towards $15,000, while breaking below it may see Bitcoin drop to $12,350.

Similar to Notcoin - Blum - Airdrops In 2024

origin »

Bitcoin (BTC) на Currencies.ru

$ 69574.88 (+0.78%)
Объем 24H $45.646b
Изменеия 24h: 2.76 %, 7d: -4.09 %
Cегодня L: $69039.59 - H: $69574.88
Капитализация $1376.068b Rank 1
Цена в час новости $ 12947.83 (437.35%)

higher highs reaching bulls correct bitcoin

higher highs → Результатов: 126


$900 Imminent? Analyst Claims Ethereum is Ready for an Explosive Move Higher

After days of underperformance, Ethereum’s price is finally catching up to that of Bitcoin The second-largest digital asset saw a massive overnight rally that led it all the way up to highs of $415 before it found any resistance This surge marks a notable climb from its recent lows of sub-$370 that were set just a few days ago It has also reinvigorated altcoins, with ETH’s uptick in price allowing many smaller assets also to […]

2020-10-23 23:00


Фото:

This Whale Trend Indicates a Flood of Retail Investors Will Soon Launch Bitcoin Higher

Bitcoin’s price action as of late is finally beginning to reflect the fundamental strength incurred throughout the past several months Virtually all on-chain metrics are currently playing in bulls’ favor, while other fundamental developments – like the adoption of BTC as a reserve asset – also give it a boost This fundamental strength may be what helped lead the cryptocurrency up from recent lows of $9,900 to highs of $11,700 that were tapped just days […]

2020-10-14 02:00


Data: Retail Interest in Bitcoin Peaked Just Before 13% August Flash Crash

Bitcoin’s price has rebounded following a brief selloff seen earlier today that caused it to dip as low as $11,200 The cryptocurrency’s recent strength has come about due to the confluence of multiple factors that have all been helping to drive it higher It remains roughly $1,000 below its 2020 highs that were set in August, however, and there’s still a plethora of underwater investors Data reveals that retail interest in buying Bitcoin seemed to […]

2020-10-13 02:00


Фото:

Analyst: Breaking This One Level Could Send Bitcoin to $14,000+

Bitcoin’s price has been consolidating in the time following its strong surge up to highs of $11,400 The cryptocurrency has yet to revert any of these gains and appears to be gearing up for another big push higher Where the market trends next will likely depend on BTC, as it has been firmly guiding the altcoin crypto market One analyst is now noting that Bitcoin could soon see a move to over $14,000, but he […]

2020-10-11 19:00


Фото:

Bitcoin Miner Outflows a Grave Sign for BTC Despite $11,000 Breakout

Bitcoin has seen some intense strength throughout the past several days, with the cryptocurrency marching from lows of $9,900 to highs of over $11,000 that were set today. This strength is somewhat unique in that BTC is the only major cryptocurrency currently marching higher, as most others are stuck within consolidation phases or downtrends. Ethereum, […]

2020-9-17 05:00


Bitcoin May Soon Push Higher After Taking Out Key Liquidity Levels

Bitcoin has witnessed some slight instability throughout the past few hours, with sellers rejecting BTC above its key resistance level at $10,500 The decline from its highs shows that this price remains a strong region of selling pressure The likelihood of BTC seeing further downside in the near-term is now significantly higher than what it was previously Some analysts are noting that where it trends next will depend largely on its reaction to a few […]

2020-9-13 19:00


Фото:

If Bitcoin Defends One Crucial Level, It May Soon Push Significantly Higher

Bitcoin appears to be forming a new consolidation phase as it trades between lows of $10,000 and highs of $10,800 The cryptocurrency has been trading squarely between these two levels for the past several hours, being unable to post any notable rebound from yesterday’s downturn The weakness that it expressed yesterday struck a serious blow to its near-term outlook, as it showed that the benchmark cryptocurrency might not have enough strength to maintain its position […]

2020-9-5 02:00


Фото:

Here’s Why Bitcoin May Face a Harsh Correction Before It Can Rally Higher

Bitcoin is in the process of stabilizing following the swift rebound it incurred overnight This allowed the benchmark crypto to climb from lows of $11,150 to highs of $11,500, around which price it is now hovering around Analysts are noting, however, that there is a path forward for the cryptocurrency to see a much stronger correction than the one seen yesterday One trader is watching for a rejection at $11,700, as he notes that this […]

2020-8-29 02:00


Фото:

Why Bitcoin May Need to Test $11,000 Before Climbing Higher

Bitcoin is starting to gain some slight momentum as the cryptocurrency’s price climbs up towards $11,800 This marks a notable surge from recent lows of $11,400 that were set just a few days ago, and it does appear that the crypto is poised to see further upside One factor boosting BTC’s outlook is Ethereum’s intense swing up to highs of $410 In the past, Ethereum has front-run movement seen by Bitcoin and the rest of […]

2020-8-25 21:00


Ethereum Bulls Defend Critical Support; Will Its Strength Last?

Ethereum has been facing intense selling pressure throughout the past few days which has caused its price to shed a good portion of its recent gains This selling pressure first came about after it incurred explosive momentum that sent its price surging up to highs of nearly $450 last week The crypto ultimately fell to the sub-$400 region yesterday, but this dip was quickly absorbed by aggressive buying pressure that helped it climb higher Analysts […]

2020-8-21 23:00


Фото:

This Fundamental Metric Suggests Bitcoin is in the Early Stages of a Bull Run

Bitcoin and the entire crypto market was able to see a push higher yesterday afternoon, which came about shortly after Ethereum surged past its near-term resistance level ETH, which was previously stuck below $400, incurred an explosive rally that sent its price racing up to highs of $430 This provided BTC with a slight tailwind, but the benchmark cryptocurrency remains stuck below its $12,000 resistance Despite its technical weakness, from a fundamental standpoint, it appears […]

2020-8-15 21:00


It’s “Only a Matter of Time” Before Chainlink (LINK) Breaks $10.00; Here’s Why

Chainlink has been flashing signs of immense strength throughout the past few days, with the cryptocurrency currently consolidating around its all-time highs. Despite being unable to break into the double-digit price region, the strong market structure established as a result of its recent push higher is likely to allow for further upside in the near-term. […]

2020-8-7 00:00