Bitcoin Price Prediction: BTC whales sell as analysts eye “dead cat bounce”


  • BTC’s recent price action has been deemed a fakeout by some prominent analysts.
  • The 50-day SMA and 100-day SMA are critical levels that will determine the direction of future price movement.
  • Blomberg released a report that predicts BTC to reach $100,000 by 2025.

Currently, the overall outlook surrounding Bitcoin seems extremely bullish. As we have previously reported, the buyers are aiming for the $12,000-level and beyond. LunarCRUSH, a crypto community analytics provider, registered more than 540 million BTC-related mentions across multiple social media networks, with 66% of them being bullish about Bitcoin.

Despite the upward price action that the flagship cryptocurrency is going through, some of the most prominent analysts in the space believe that everything could be part of a “fakeout” or “dead cat bounce.” Such market behavior suggests that the ongoing uptrend will be short-lived before prices are forced to drop further.

A steep price decline before substantial gains?

As previously reported by FXStreet, the premier cryptocurrency had a bullish breakout from the symmetrical triangle on September 8. Now, the 50-day SMA ($10,850) and 100-day SMA ($10,650) play a critical role in identifying whether or not the recent price action was part of a fakeout

BTC/USD daily chart

BTC/USD daily chart

Based on IntoTheBlock’s “In/Out of the Money Around Price,” the range between these price points is, far and away, the strongest support level for BTC. The on-chain statistical model suggests that between $10,850 and $10,650 around 3.45 million addresses had purchased 2.38 million BTC.

BTC IOMAP

fxsoriginal

If BTC crumbles under intense selling pressure and breaks below these levels, then prices will likely fall all the way down to the 200-day SMA ($9,500), validating the bearish prediction. Such a pessimistic thesis holds when looking at the way Bitcoin whales have been behaving in the last 48 hours, which may hint at a spike in selling pressure.

Bitcoin holders distribution

fxsoriginal

Santiment, a cryptocurrency analytics platform, indicates that based on its “Holders Distribution” index the number of addresses holding 1,000 to 100,000 BTC reduced by 9 over the last 48 hours, going down by ~0.5%. This may not seem like a big number, but keep in mind that these addresses hold millions of dollars worth of BTC. So, it looks like the whales are selling off their tokens, which is a very bearish sign.

The Flipside: How can BTC strengthen the bullish narrative?

The immediate task for the buyers is very obvious, protect the 50-day SMA and 100-day SMA at all costs. As we have seen, any fall below this can be catastrophic. Plus, they should definitely make a push for the $11,600 resistance line. As per the IOMAP, this is the strongest resistance level on the upside. Clearing this will help BTC surge up to the $13,000-level.

The longterm outlook remains bullish

Bloomberg recently published a report claiming that they expect BTC to reach $100,000 by 2025. In the report, the financial media giant made the following points to support their narrative:

  •  Bitcoin has a habit of adding zeros: Bitcoin first reached $1,000 in 2013, it corrected by 80% and consolidated. For years later, the benchmarked cryptocurrency reached $10,000 in 2017 and then corrected by about 70% and currently remains in consolidation. Assuming normal maturation and doubling the time frame from 2013 to 2017, BTC should add another 0 and reach $100,000 eight years later in 2025. 
  • Increasing demand: Bitcoin has already experienced investments from large institutions like Microstrategy and Square. More institutional investments can be expected in the future.
  • Limited supply: Bitcoin has a fixed supply of 21 million, of which around 90% has been mined already. Unlike other high-value assets, the total amount of BTC cannot be inflated.

Key price levels to watch

Currently, the two most important levels to watch are the 50-day SMA ($10,850) and 100-day SMA ($10,650). If these levels crumble under intense selling pressure, the flagship cryptocurrency will drop to the 200-day SMA ($9,500). 

However, if the bulls come through and manage to defend these levels successfully, they will need to break BTC to turn the $11,600 resistance line into support to prevent any dangers of a pullback or fakeout. Breaking past that level will give BTC a clear path to $13,000.

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.

Cryptos feed

Latest Crypto News


Latest Crypto News & Analysis

Editors’ Picks

Bitcoin at $5,000 charts begin to pop up on Twitter, how likely is such a massive correction?

It’s not uncommon to see considerable corrections in the market after massive rallies like the one Bitcoin is experiencing. Around $80 billion were wiped out from the market in less than 24 hours, and some analysts believe the price could go even lower.

More Bitcoin News

Ethereum transaction fees skyrocket as price collapses

At the time of writing, Ethereum (ETH) is trading at $520. The second-largest digital asset, with the current market capitalization of $59 billion and an average daily trading volume of $30 billion, has lost over 12% on Thursday. However, it is still in a green zone on a week-to-week basis.   

More Ethereum News

Cardano Price Prediction: ADA must overcome a massive supply barrier to extend a recovery

Cardano (ADA) has climbed to the 8th position in the global cryptocurrency market rating. The coin hit $0.194, the highest level since July 2020, on November 24, before the correction started. 

More Cardano News

SushiSwap Price Analysis: SUSHI rebounds strongly as whales buy the dip

The entire cryptocurrency market suffered a massive crash on Thursday. Sushiswap price dropped by more than 20% within hours but managed to recover almost instantly, hitting $1.285.

More SushiSwap News

BEST CRYPTO BROKERS/EXCHANGES




Bitcoin Weekly Forecast: BTC makes new yearly highs while its network activity looks worrisome

Bitcoin has lived through the best week since February 2018. The pioneer digital currency price gained over $2,000 in less than seven days. The bullish momentum allowed it to reach a new multi-year high of nearly $18,800, marking November 2020 one of the strongest bullish months ever. 

Read the weekly forecast

BTC

ETH

XRP