Bitcoin Price Analysis: BTC Bulls Regain Control, Plenty Of Room For Growth Above $11k

By John Isige
Published September 28, 2020 Updated September 28, 2020
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Bitcoin Price Analysis: BTC Bulls Regain Control, Plenty Of Room For Growth Above $11k

By John Isige
Published September 28, 2020 Updated September 28, 2020
  • Bitcoin renews the uptrend after settling above the 50-day SMA.
  • BTC is accorded with immense support according to on-chain analysis.

The flagship cryptocurrency is gradually closing in on the coveted $11,000 critical level. Immediate support has been established above the 50-day Simple Moving Average. As Bitcoin settled above the 50 SMA, gains above this vital level are also becoming apparent.

From a technical perspective, the Relative Strength Index (RSI) suggests that the trend is in the hands of the bulls. The RSI has stepped above the midline. Moreover, it is pointing upwards, signaling the potential BTC has in the near term.

It is important the Bitcoin holds above the moving averages. Otherwise, if the parallel ascending channel confirms a bear flag pattern, BTC could succumb to another selloff before recovery takes precedence again.  The low trading volume experienced hints that a sizeable number of buyers are not convinced that Bitcoin has the ability to sustain the uptrend.

BTC/USD daily chart


Consequently, IntoTheBlock’s IOMAP model reveals that the road to $12,000 is bound to be a challenging one. However, the toughest resistance lies between $11,586 and $11,914. Here, 1.05 million addresses previously bought 737,540 BTC. A break above this zone would give Bitcoin a quick boost past the psychological resistance at $12,000.

On the downside, the bellwether cryptocurrency is sitting on an area of immense support. For instance, the demand pressure between $10,582 and $10,910 is strong enough to absorb most of the selling pressure in the event of a rejection from current price levels. Here, 1.42 million addresses previously purchased 1.03 million BTC.

Bitcoin IOMAP chart

BTC IOMAP chart by IntoTheBlock

Therefore, Bitcoin has a challenging path towards $12,000 but support is also strong enough to hold the price from plunging massively. Consolidation will most likely take precedence in the near term, to set the ground for more gains above $11,000.

Bitcoin Intraday Levels

Spot rate: $10,901

Percentage change: 1.15

Relative change: 124

Trend: Bullish bias

Volatility: Low

Read more: How Bitcoin Price Could Explode in Late 2020



The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
John Isige
1164 Articles
John is a talented writer with over two years of experience actively contributing to the cryptocurrency industry by providing credible, interesting and easy to read the content. His main focus is on cryptocurrency price analysis and industry news coverage. Lets follow him on Twitter at @jjisige