Bitcoin (BTC) is trading at $ 13,022 as of today, October 25, 2020, as of this writing. After the bullish rally of the past few days, key support and resistance levels are starting to emerge clearly.
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3% drop for 3 reasons
Bitcoin climbed to $ 13,350 today, before dropping 3% in less than an hour.
The $ 13,300 – $ 13,500 is a resistance zone in the short term; many miners have moved their BTC to exchanges, once the BTC entered that range.
Data from ByteTree show that miners have sold more than BTC that they have not produced in the past week.
Some technical analysts like the crypto-trader Cantering Clark, had anticipated this rise to the level of 13,500 USD, a rise that would then be followed by a decline.
Today’s fall can also be explained by an overheating of the futures and options markets, after a BTC which recorded a weekly growth of 15% during the past trading week.
Futures markets are cooling, so today’s fall is healthy to allow a continued rise in Bitcoin.
Markets also anticipate the expiration of $ 750 million in options BTC in 6 days.
This 3% decline is also partly due to the increased volatility of Bitcoin, the latter being stimulated by the exchanges of the weekend and in particular of Sunday.
The resistance support games
Michael van de Poppe shared today on Cointelegraph, its price forecasts for BTC. After this rally which took the BTC up to 13,350 USD, Bitcoin should now test supports lower in the $ 11,600 – $ 12,000 area.
Defense of the $ 12,000 is essential for a continuation of the rally. The next resistance levels are at $ 13,600 – $ 14,000 and $ 16,500 – $ 17,000.
The rise in the price of BTC is also complicated by other areas of resistance, those of its market cap.
The 395 – 415 billion is a zone of resistance for the market capitalization of the BTC. Once the BTC will have managed to get through it, then it will have to break the next resistance at the level of 510 – 525 billion dollars.
Another test of the $ 330-340 billion support zone will help build a healthy foundation for a bull run.
BTC should re-test supports at lower levels before resuming the upward path. 2 areas of resistance identified, 2 months before the end of 2020, 2 other companies that will follow Square and PayPal’s path by then?
Litecoin, welcome in the Silver Age