- 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
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).
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
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.
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.