Bitcoin Price Forecast: BTC faces strong resistance stack between $10,700-$10,800 – Confluence Detector


  • BTC is currently sandwiched between the 50-12-hour and 200-12-hour SMA charts.
  • The number of holders with >100,000 BTC has increased by 7 over the last three weeks. 

At the time of writing the premier, cryptocurrency is hovering near the $10,600 mark. There is a lot of sluggishness in the market as neither the bulls nor the bears are looking to hold the price by the scruff of its neck. All this may soon change, though.

BTC/USD 12-hour chart

BTC/USD 12-hour chart

The price is consolidating in a symmetrical triangle pattern and is currently sandwiched between the 50-12-hour SMA and 200-12-hour SMA. Strong resistance lies at the 50-12-hour SMA curve ($10,700) that has repeatedly rejected the price. So, where can we expect BTC to go next? For that, let’s consult the confluence detector.

BTC confluence detector

fxsoriginal

The confluence detector helps us identify strong resistance and support levels and predict BTC’s movement. As of now, there is a strong stack of resistance between $10,700-$10,800 (aka the 50-12-hour SMA curve), which is pushing the price down. 

This repeated rejection may drop the price down to the $10,400 support level, which seems to be the only noticeable support level on the downside. If this level doesn’t hold firm, then you can expect the price to plummet below $10,000. In this case, one can expect BTC to fall to $9,700 before it encounters another healthy support.

Can the bulls break above the 50-12-hour SMA curve?

If the bulls do manage to gain enough momentum to break above the 50-12-hour SMA and the 100-12-hour SMA curves, they will be able to push BTC up to $11,300. While they may seem overly optimistic for now, Sanbase’s holder distribution chart shows us that the number of holders with >100,000 BTC has increased by 7 over the last three weeks. 

BTC holder distribution

fxsoriginal

While this may not seem a significant number, keep in mind that each of these addresses holds millions of dollars worth of Bitcoin. The whales taking advantage of the stagnant price action to consolidate their positions bodes well for the overall market.

Verdict: As the flagship coin keeps making uninspired movements, the bears may soon run of patience and push the price below the $10,000 mark. On the other hand, the bulls will need to break above the 50-12-hour and 100-12-hour SMA curves to regain upward momentum.
 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed

Latest Crypto News


Latest Crypto News & Analysis

Editors’ Picks

ICON looks extremely bullish in the long-term as ICX price targets $3

A brief technical and on-chain analysis on ICON price. Here, FXStreet's analysts evaluate where ICX could be heading next as it looks ready to continue surging.

More Crypto News

BNB price marches toward $400 regardless of Binance legal woes

A brief technical and on-chain analysis on Binance Coin Inu price. Here, FXStreet's analysts evaluate where BNB could be heading next as it seems primed to advance further.

More Binance Coin News

Uniswap price has gathered the steam for UNI to advance to $30

A brief technical and on-chain analysis on Uniswap price. Here, FXStreet's analysts evaluate where UNI could be heading next as it seems bound to advance further.

More Uniswap News

These two DeFi tokens are primed to skyrocket

SushiSwap continues to trade in a horizontal channel. Aave emerging from an ascending triangle pattern, breaking the 200-day SMA resistance. 

More Crypto News

BEST CRYPTO BROKERS/EXCHANGES



Bitcoin Weekly Forecast: Markets revert to mean, but BTC price remains indecisive

Bitcoin price shows considerable strength after springing from the recent crashes. Still, it is uncertain whether the current bullish impulse will morph into a new uptrend or lead to a more profound decline.

Read the weekly forecast

BTC

ETH

XRP