- 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
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
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
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.
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