According to the Relative Strength Index (RSI), the bellwether cryptocurrency is held firmly by the bulls. The indicator illustrates overbought conditions but Bitcoin is focused on breaking some more barriers in its path to $20,000. However, this also calls for traders to be aware that a reversal seems imminent before recovery resumes again.
BTC/USD daily chart
IntoTheBlock’s IOMAP model reveals a relatively smooth path to $18,000. Nonetheless, the most significant resistance range runs from $16,337 to $16,800. Here, 150,200 addresses had previously purchased approximately 108,000 BTC. If this hurdle is pushed into the rearview, Bitcoin is likely to rush to $18,000 in preparation for the grand approach to $20,000.
On the downside, the lack of immediate strong support means that reversal would be dire and could erase most of the gains accrued this week. The most robust support lies between $13,479 and $13,962. Here, roughly 1.3 million addresses previously bought 864,000 BTC.
Bitcoin IOMAP chart
As shown by the IOMAP model a reversal from the current price level could be disastrous for Bitcoin. The first moving average support is presented by the 50 SMA slightly under $12,000. It is followed closely by the 100 SMA, while the 200 SMA holds the ground around $10,400 in the daily timeframe. Therefore, establishing higher support, perhaps above $15,000 would go a long way in cushioning BTC from a potentially massive drop.
Luke has had a long interest in financial technology, especially cryptocurrency and blockchain. With a Bachelors degree in Journalism and Media, Luke is dedicating his writing skills for the digital currency sphere.He can be contacted at firstname.lastname@example.org