Bitcoin price hunts for a clear pathway to $20,500, as on-chain metrics improve

John Isige Bitcoin News published December 8, 2020 | modified December 8, 2020

Bitcoin-Institutional-Buying

Bitcoin price hunts for a clear pathway to $20,500, as on-chain metrics improve

  • Bitcoin must hold above the Bollinger Bands’ middle boundary and the 50 SMA to sustain the uptrend.
  • The IOMAP model by IntoTheBlock reveals the lack of substantial resistance that could hamper an upswing to $20,500.

Bitcoin is still holding in consolidation between $19,000 and $19,500. Recent attempts to grow the uptrend to $20,000 were cut short slightly below the critical resistance level at $19,000. On the downside, the bellwether cryptocurrency has settled above the 50 Simple Moving Average. A breakout is expected to elevate Bitcoin above $20,000 in the near term.

Meanwhile, the flagship cryptocurrency is dancing at $19,212 while holding above two vital levels; the 50 SMA on the 4-hour chart and the Bollinger Bands’ middle boundary. Closing the day above these key levels would encourage buyers who have retreated to the sideline to retune to the market.

Enough trading volume is needed to boost BTC’s price action above $19,500. For now, the least resistance path is sideways, now that the Relative Strength Index is horizontal at the midline.

BTC/USD 4-hour chart

BTC/USD price chart
BTC/USD price chart by Tradingview

A breakout is expected in the near term mainly due to the squeezing of the Bollinger Bands. Volatility is significantly low compared to the beginning of December. In other words, as volatility makes a comeback into the market, BTC will be getting ready for a massive swing.

According to IntoTheBlock’s IOMAP model, the breakout is likely to be on the upside, especially with minor resistances ahead of the Bitcoin. For now, the only stubborn resistance stands at $19,233 to $19,252. Here, nearly 174,000 addresses previously bought roughly 66,000 BTC.

Bitcoin IOMAP chart

Bitcoin IOMAO model
Bitcoin IOMAO model by IntoTheBlock

On the downside, immense support is laid out for Bitcoin, running from $18,634 to $19,195. Here, approximately 1.8 million addresses are profiting from the nearly 999,500 BTC bought in the range. It is doubtful that a downswing will come into play and overshoot this buyer congestion.

Bitcoin intraday levels

Spot rate: 19,200

Relative change: 22

Percentage change: 0.12%

Trend: Sideways

Volatility: Extremely low

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