Bitcoin Price Forecast: BTC has clear path to $13,000 – Confluence Detector


  • Bitcoin’s daily confluence detector lacks substantial resistance upfront.
  • The MACD shows increasing bullish momentum.

Over the last six days, Bitcoin bulls have been in full control of the market as the price rose from $11,340 to $12,835.  This Wednesday, the premier cryptocurrency had the largest single-day gain since July 27. The MACD shows increasing bullish momentum, so further price growth is anticipated.

BTC/USD daily chart

BTCUSD daily chart

The confluence detector is a handy little tool that helps us visualize strong resistance and support levels. As per the daily confluence detector, there is a lack of strong resistance levels on the upside. This should be encouraging news for the buyers as they aim to take BTC into the $13,000-zone.

BTC daily confluence detector

fxsoriginal

The Flipside: Can the bears spoil the party?

Even if the bears take control, their downside is limited by the strong support zone between $12,000-$12,100. Even if they manage to break below this stretch, there is another robust support at $11,000, which benefits from both the 50-day and 100-day SMAs. Adding further credence to this bearish outlook is the way the whales have been behaving.

BTC holders distribution

fxsoriginal

Santiment’s holders distribution graph shows you the number of addresses belonging to a particular token bracket. As per the chart, the number of addresses holding 10,000-100,000 tokens fell from 111 on October 8 to 104 on October 20. This is a heavily bearish sign as it shows that the whales are selling off their holdings.

Key price levels to watch

Bitcoin buyers have the freedom to take the price into the $13,000 and even the $14,000 obstacle. The daily confluence detector shows a complete lack of strong resistance barriers upfront.

For the bears, the downside is capped off at the $12,000-$12,100 support wall. A break below that zone will take the price down to $11,000, which has both the 50-day and 100-day SMAs.
 

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

Ethereum shifts away from ETH 2.0

Ethereum will be moving away from ETH 1.0 and ETH 2.0 as the protocol undergoes significant changes. Core developers on the network are referring to the stages on the blockchain as the “execution layer” and “consensus layer.”

More Ethereum News

Dogecoin price primed for an explosive move to $0.25

A brief technical and on-chain analysis on Dogecoin price. FXStreet's analysts evaluate where DOGE could be heading next.

More Dogecoin News

Solana price must regain $100 to recover from market volatility

Solana (SOL) price broke below the monthly S2 support at $89 and targeted $59 to the downside. The entrance of bulls could push price action in SOL back above S2 and keep it there going into today's session. 

More Solana News

Renowned analyst believes Bitcoin bottomed out and entered a 96-day bull cycle

Analysts have evaluated the Bitcoin price trend and revealed that a rejection of the asset’s reversal attempts could imply that it has bottomed out. Bitcoin may have hit bottom and entered a 96-day bull cycle. 

More Bitcoin News

Bitcoin: BTC may capitulate to $30,000

Bitcoin price has dropped considerably over the last three weeks. The recent downswing has made things worse for BTC and hints that a steep correction could be on its way.

Read full analysis

BTC

ETH

XRP