• The $11,600 resistance line has proven to be a substantial barrier for the bulls.
  • The 100-day SMA has crossed over the 50-day SMA to chart the bearish cross pattern.

After finding support at the 100-day SMA, Bitcoin jumped up from $10,600 to $11,500 between October 7 and October 12. Since then, the premier cryptocurrency has been trending horizontally after facing repeated rejections at the $11,600 resistance line. The premier cryptocurrency has since dropped to $11,350.

BTC/USD daily chart

BTC/USD daily chart

The 100-day SMA has crossed above the 50-day SMA to chart a bearish cross pattern. BTC will probably drop till the point of intersection, which coincides with the $10,825 support wall. At this level, 1.4 million addresses had previously purchased 960,000 BTC. A break below this level will take the price down to the $10,500 and a further break will plummet the price down to the 200-day SMA ($9,700).

BTC IOMAP

fxsoriginal

The whales are contributing majorly to the bearish pressure by dumping their holdings. The number of addresses holding 1,000-10,000 BTC has dropped from 2,082 on October 13 to 2,078 on October 16. Similarly, the number of addresses holding 10,000-100,000 BTC dropped from 109 on October 12 to 104 on October 16. 

BTC holders distribution

fxsoriginal

The Flipside: How can the bulls salvage this?

The bulls can still salvage the situation if they regain momentum and break past the $11,600 resistance line. Following that, the IOMAP tells us that there is a moderate-to-strong resistance barrier at $11,850. If the buyers somehow manage to break past these levels, they will push the price to $13,000.

Key price levels to watch

The bears will look to drop the price to the 50-day and 100-day SMA intersection at $10,825. A further drop will see BTC go down to the $10,500 support line. These two walls are strong enough to absorb a large amount of selling pressure.

The bulls will need to first break past the $11,600 obstacle. If they somehow manage to do that, the next notable resistance they face is at $11,850.
 

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.

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