- Bitcoin is nurturing bullish moment after bouncing off $11,200 support on Friday.
- The path with the least hurdles is upwards according to on-chain analysis.
Bitcoin has made a considerable recovery from the support confirmed at $11,200. The freefall towards the weekend occurred after news broke that OKEx had suspended withdrawal service for digital assets/cryptocurrencies. The losses were not unique to Bitcoin but cut across the market. While the instability in the market faded, the services on the cryptocurrency exchange remain suspended.
At the time of writing, Bitcoin is dancing at $11,480 amid a fight to overcome the selling pressure at $11,500. Further up, price action beyond $11,600 would see the buyers shift their attention to $11,800 and $12,000, respectively.
The bullish outlook is also brought to light by the Moving Average Convergence Divergence (MACD). In addition to regaining the ground in the positive territory, a bullish divergence is visible. In other words, bulls have the upper hand, at least for now.
BTC/USD 4-hour chart
In case of a reversal, the key ascending trendline will come in handy as support aided by the 50 Simple Moving Average (SMA) in the 4-hour timeframe. Other crucial support areas to have in mind include $11,200, the 100 SMA and the 200 SMA.
On-chain data using IntoTheBlock IOMAP model suggests the path of least resistance is upwards. However, a seller congestion between $11,477 and $11,818 must down come for the rest of the gains to $12,000 to materialize. Here, around 1.1 million addresses previously bought nearly 777,000 BTC.
Bitcoin IOMAP chart
On the downside, immense support holds Bitcoin in place and declines are very doubtful in the near term unless there is a drastic change. Nonetheless, the most robust anchor lies between $10,448 and $10,775. Here, approximately 1.7 million addresses previously purchased nearly 1.2 million BTC.
Bitcoin Intraday Levels
Spot rate: $11,468
Relative change: -45
Percentage change: -0.4%
Trend: Short term bearish bias