Tanya Abrosimova
Independent Analyst
- Bitcoin is ready for a technical correction before another upside wave.
- IOMP data implies that the upside is the path of least resistance for BTC.
Bitcoin (BTC) has settled above $13,000; however, further growth seems to be limited. The pioneer digital coin hit the recent high of $13,361 on October 25 and retreated to $13,110 by the time of writing. The coin has gained over 1.6% in recent 24 hours and over 14% on a week-to-week basis.
Bitcoin's average daily trading volume is at $24.3 billion, while its market share settled at 61.2%.
BTC/USD bears are ready to strike back
The TD Sequential indicator presented a sell signal on the daily chart in the form of a green nine candlestick. This bearish formation implies that the upcoming selling pressure may push it for one to four daily candlesticks with the first aim at $12,000. However, considering the strong long-term fundamentals, BTC may resume the recovery after a short-lived correction.
BTC/USD daily chart
On the four-hour chart, BTC/USD is moving within the narrowing Bollinger Bands. A prolonged period of low trading activity implies that high volatility is underway as the squeeze of the Bollinger Bands and a stagnation period is usually considered as a precursor of large price movements.
A sustainable move below the lower band at $12,800 could signal a drop to $12,400 or $12,000. On the bullish side, in order to confirm the next upside wave, Bitcoin needs to break out above the upper band at $13,250, which coincides with the signal a jump to $15,000.
BTC/USD 4-hour chart
The In/Out of the Money Positioning (IOMAP) confirms that there is strong support between the current price and $12,750 as over 1 million addresses holding over 800k coins. The next big cluster of addresses is registered on approach to $12,000, which is in line with the technical picture.
Bitcoin's IOMP data
 Analytics and Charts2610-637393134790558022.png)
Source: Intotheblock
Meanwhile, the market positioning data reveals that there are no significant barriers above the current price, meaning that the upside remains the path of least resistance now.
BTC/USD: Key levels to watch
Considering the signals of the TD Sequential indicator and the on-chain data, Bitcoin may be ripe for a short-term downside correction with the ultimate bearish target at $12,800. This level will serve as a jumping-off ground and allow for a new bullish wave to take the price to $15,000.
A move below $12,800 will bring more sellers to the market, with the potential downside aims $12,000 where a new buying interest is likely to appear.
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
Trust Wallet with over 100 million users back on Google Play Store after temporary removal
Trust Wallet is a non-custodial software wallet that allows traders to send, receive, exchange and hold digital assets. Users can hold cryptocurrencies and NFTs in their Trust Wallets. The wallet disclosed its removal from Google’s application store, Play Store, early on Monday.
Maker loses 9% in past 24 hours as whales sell MKR for profits
Maker (MKR) wiped out 9% of its value in the past 24 hours. Data from crypto intelligence tracker Santiment shows that large wallet investors are taking profit on their MKR holdings, likely driving down the asset’s price.
Week Ahead: Bitcoin could surprise investors this week Premium
Two main macroeconomic events this week could attempt to sway the crypto markets. Bitcoin, which showed strength last week, has slipped into a short-term consolidation. However, a shift in momentum could soon bring forth a momentary rally for BTC and altcoins.
XRP slides to $0.50 as ETHgate controversy resurfaces, Ripple CTO debates impact on litigation
Ripple (XRP) loses all gains from the past seven days, trading at $0.50 early on Monday. XRP holders have their eyes peeled for the Securities and Exchange Commission (SEC) filing of opposition brief to Ripple’s motion to strike expert testimony.
Bitcoin: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s (BTC) recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.